Delhi HC Gives Relief After Duplicate GST Order Appears on Portal, Allows Reply to SCN Notices

The Delhi High Court allowed an option to reply to the GST show cause notice on seeing duplication of the order in the GSTN portal.

The applicant, Raks Trade Logistics Pvt. Ltd., asked for setting aside the show cause notice dated 20th November, 2024, and the demand order dated 19th February, 2025. This is a case where a demand to the tune of Rs. 5,42,63,640 has been raised to the applicant with the components, that are, tax Rs. 2,94,45,165/-, interest of Rs. 2,18,53,959, and penalty of Rs. 29,64,516.

On 20th November 2024, the respondent has furnished the SCN where the petition has emerged, which claims that the applicant has taken the input tax on his inward supplies on the reconciliation of turnovers in GSTR-09 filing and also that ITC has been claimed for cancelled dealers, return defaulters non-tax payers.

In context to SCN, a reminder notice was issued and a date for the personal hearing was appointed. The applicant did not come for that and did not submit any response before the SCN. It is directed to pass the demand order on 19th February, 2025. The counsel of the applicant, Mr. Chinmaya Seth, the final demand order is duplicated, and thus the amount asked has doubled.

As per the perusal of the record, the applicant, by not filing a response to the SCN and not attending the personal hearing, has been wholly recalcitrant in the present proceedings. A challenge to the demand order has been raised belatedly.

The reason given is that the employee with access to the GST portal of the applicant company is unable to bring to the notice of the applicant the required information of the proceedings that led to the passing of the demand order on 19th February, 2025.

A division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta, acknowledging the duplication in the final demand order on 19th February, 2025, the applicant must be furnished with an opportunity to file a reply to the SCN, and a chance for a personal hearing also needs to be accorded.

The case fact is that the costs of Rs. 25,000 are charged on the applicant, which shall be deposited with the Delhi DGST Department to take its opportunity to submit a reply and appear for a personal hearing. The DGST Department for the payment of costs shall deliver the applicant’s account details.

Let the applicant in 1 month before the SCN dated 20th November 2024. For the same objective, in 2 days applicant’s GST portal will open to provide access to him. The impugned adjudication order has been set aside by the court on 19th February, 2025.