Delhi HC Cancels GST Order Due to Wrong SCN Communication on GSTN Portal

An ex-parte order issued against M/s N B Footcare has been set aside by the Delhi High Court under the Central Goods and Services Tax Act, 2017, due to the inappropriate communication of a Show Cause Notice (SCN).

On the GST portal, SCN had been uploaded only under the “Additional Notices Tab” before January 16, 2024, a period when this section was not adequately prominent to ensure user visibility, the bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta cited.

N B Footcare, a sole proprietorship engaged in the manufacturing of footwear, has filed a petition challenging both the Show Cause Notice (SCN) and the subsequent demand order, which indicates outstanding dues amounting to Rs. 32.44 lakh. Additionally, the petitioner is contesting the constitutional validity of two central GST notifications — Notification No. 56/2023 and Notification No. 9/2023.

It was mentioned by the applicant that no reply was filed because of the same technical limitation, and the mistake of his chartered accountant managing the GST email account, which directed to the adverse order without a personal hearing.

While acknowledging the procedural gap, the Court said, “Considering the fact that the Petitioner did not get a proper opportunity to be heard and no reply to the SCN has been filed by the Petitioner, the matter deserves to be remanded back.”

Earlier decisions in identical cases are referred by the court, where these Show cause notices were uploaded in non-prominent sections of the portal, and no adequate hearing chance was allotted. It mentioned the rulings in Neelgiri Machinery and Anant Wire Industries, where cases were remanded for fresh adjudication.

HC observed the current litigation before the Apex court related to the impugned GST notifications’ validity u/s 168A of the CGST Act. The Supreme Court in SLP No. 4240/2025 is anticipated to furnish the authoritative directions on whether these notifications extending adjudication timelines are valid constitutionally.

The court, while quashing the order, asked the applicant to submit a fresh response before SCN by July 25, 2025. Through email and SMS, the adjudicating authority should issue a personal hearing.

Read Also: Delhi HC: Uploading of SCN by GST Dept Under the Additional Notices Tab on Portal is Improper

After duly considering the reply and submissions, a fresh order is to be passed. On the judgment of the Apex court final determination of the validity of the notifications shall be relied upon.