Full Text
HIGH COURT OF DELHI
Date of Decision: 8th October 2025
SURAJ INDUSTRIES .....Petitioner
Through: Ms. Tabassum Firdause, Mr. M.A.
Ansari, Mr. P.K. Malik, Mr. Ahmed Ansari & Md. Imran Ahmed, Advs.
(9718503000)
Through: Ms. Vaishali Gupta, Adv. Ms. Sangita Malhotra, Adv. for R4
(8826587368 )
JUDGMENT
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by the Petitioner- Mr. Neeraj Kathuria, one of the partners in M/s Suraj Industries under Article 226 of the Constitution of India, inter alia, challenging the impugned order dated 21st April, 2024 passed by the Sales Tax Officer Class II/Avato Ward 63, Zone 6, Delhi (hereinafter, ‘impugned order’). The present petition also challenges the Show Cause Notice dated 30th January, 2024 issued by the Sales Tax Officer Class II/Avato Ward 63, Zone 6, Delhi (hereinafter, ‘impugned SCN’), for the financial year 2018-19.
3. Additionally, the petition also challenges the following Notifications: ● Notification No. 56/2023- Central Tax dated 28th December, 2023; ● Notification No. 56/2023- State Tax dated 11th July, 2024 (hereinafter, ‘the impugned notifications’).
4. The present petition is similar to a batch of petitions wherein inter alia, the impugned notifications were challenged. W.P.(C) No. 16499/2023 titled DJST Traders Private Limited v. Union of India &Ors. was the lead matter in the said batch of petitions. On 22nd April, 2025, the parties were heard at length qua the validity of the impugned notifications and accordingly, the following order was passed:
Whereas, the Guwahati High Court has quashed Notification No. 56 of 2023 (Central Tax).
6. The Telangana High Court while not delving into the vires of the assailed notifications, made certain observations in respect of invalidity of Notification No. 56 of 2023 (Central Tax). This judgment of the Telangana High Court is now presently under consideration by the Supreme Court in S.L.P No 4240/2025 titled M/s HCC-SEW-MEIL- AAG JV v. Assistant Commissioner of State Tax &Ors. The Supreme Court vide order dated 21st February, 2025, passed the following order in the said case:
7. Dr. Muralidhar pointed out that there is a cleavage of opinion amongst different High Courts of the country. 8. Issue notice on the SLP as also on the prayer for interim relief, returnable on 7-3-2025.”
7. In the meantime, the challenges were also pending before the Bombay High Court and the Punjab and Haryana High Court. In the Punjab and Haryana High Court vide order dated 12th March, 2025, all the writ petitions have been disposed of in terms of the interim orders passed therein. The operative portion of the said order reads as under:
8. The Court has heard ld. Counsels for the parties for a substantial period today. A perusal of the above would show that various High Courts have taken a view and the matter is squarely now pending before the Supreme Court.
9. Apart from the challenge to the notifications itself, various counsels submit that even if the same are upheld, they would still pray for relief for the parties as the Petitioners have been unable to file replies due to several reasons and were unable to avail of personal hearings in most cases. In effect therefore in most cases the adjudication orders are passed ex-parte. Huge demands have been raised and even penalties have been imposed.
10. Broadly, there are six categories of cases which are pending before this Court. While the issue concerning the validity of the impugned notifications is presently under consideration before the Supreme Court, this Court is of the prima facie view that, depending upon the categories of petitions, orders can be passed affording an opportunity to the Petitioners to place their stand before the adjudicating authority. In some cases, proceedings including appellate remedies may be permitted to be pursued by the Petitioners, without delving into the question of the validity of the said notifications at this stage.
11. The said categories and proposed reliefs have been broadly put to the parties today. They may seek instructions and revert by tomorrow i.e., 23rd April, 2025.”
5. The abovementioned writ petition and various other writ petitions have been disposed of by this Court on subsequent dates, either remanding the matters or relegating the parties to avail of their appellate remedies, depending upon the fact situation. All such orders are subject to further orders of the Supreme Court.
6. As observed by this Court in the order dated 22nd April, 2025 as well, since the challenge to the above mentioned notifications is presently under consideration before the Supreme Court in S.L.P No 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax &Ors., the challenge made by the Petitioner to the impugned notifications in the present proceedings shall also be subject to the outcome of the decision of the Supreme Court.
7. However, in cases where the challenge is to the parallel State Notifications, the same have been retained for consideration by this Court. The lead matter in the said batch is W.P.(C) 9214/2024 titled Engineers India Limited v. Union of India &Ors.
8. In the present case, the submission of the Petitioner, on facts, is that the impugned SCN dated 30th January, 2024 was uploaded on the ‘Additional Notices Tab’. Thus, the same was not brought to the knowledge of the Petitioner. Thereafter, a reminder is stated to have been issued on 7th March,
2024. However, no reply was filed to the same and hearing was not availed by the Petitioner. Thereafter, the impugned order was passed on 21st April,
2024. Hence, the impugned order was passed without the Petitioner being heard.
9. Ld. Counsel for the Petitioner submits that the ground for non-filing of reply is that the Petitioner filed an application seeking cancellation of GST registration on 11th May, 2022. The same was rejected vide order dated 15th June, 2022. Thereafter, a Show Cause Notice was issued on 15th June, 2022 (hereinafter, ‘SCN dated 15th June, 2022) for cancellation of the GST registration on the ground that the firm is not traceable.
10. Subsequently, vide order dated 31st August, 2023 the GST registration of the Petitioner was cancelled retrospectively w.e.f. from 1st July 2017. Thus, the Petitioner did not access its portal and did not acquire knowledge of the SCN and the reminders.
11. The Court has heard the parties. In fact, this Court in W.P.(C) 4779/2025 titled ‘Sugandha Enterprises through its Proprietor Devender Kumar Singh V. Commissioner Delhi Goods And Service Tax And Others’ under similar circumstances where no reply was filed to the SCN had remanded the matter in the following terms:
with no other option but to upheld the demand raised in SCN/DRC 01. DRC 07 is issued accordingly.
8. This Court is of the opinion that since the Petitioner has not been afforded an opportunity to be heard and the said SCN and the consequent impugned order have been passed without hearing the Petitioner, an opportunity ought to be afforded to the Petitioner to contest the matter on merits.
9. Accordingly, the impugned order is set aside. The Petitioner is granted 30 days’ time to file the reply to SCN. Upon filing of the reply, the Adjudicating Authority shall issue to the Petitioner, a notice for personal hearing. The personal hearing notice shall be communicated to the Petitioner on the following mobile no. and e-mail address:....”
12. In view of the reasons given for non-filing of the reply, this Court is of the opinion that the Petitioner deserves to be given an opportunity to file a reply and a hearing ought to be held. There is no doubt that after 16th January 2024, changes have been made to the GST portal and the ‘Additional Notices Tab’ has been made visible. However, in the present case, since the impugned SCN was issued on 30th January, 2024, the ground of ‘Additional Notices and Tab’ is not maintainable.
13. Under such circumstances, considering the fact that the Petitioner did not get a proper opportunity to be heard and no reply to the impugned SCN has been filed by the Petitioner, the matter deserves to be remanded back to the concerned Adjudicating Authority.
14. Accordingly, the impugned order is set aside. The Petitioner is granted time till 30th November 2025, to file the reply to impugned SCN. Upon filing of the reply, the Adjudicating Authority shall issue a notice for personal hearing to the Petitioner. The personal hearing notice shall be communicated to the Petitioner on the following mobile No. and e-mail address: ● Email ID: ansariadvocate15@gmail.com ● Mobile: 9718503000
15. The reply filed by the Petitioner to the impugned SCN along with the submissions made in the personal hearing proceedings shall be duly considered by the Adjudicating Authority, and fresh order with respect to the impugned SCN shall be passed accordingly.
16. However, it is made clear that the issue in respect of the validity of the impugned notifications is left open. Any order passed by the Adjudicating Authority shall be subject to the outcome of the decision of the Supreme Court in S.L.P No 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. and the decision of this Court in W.P. (C) 9214/2024 titled Engineers India Limited v. Union of India & Ors.
17. All rights and remedies of the parties are left open. Access to the GST Portal, shall be provided within one week to the Petitioner, to enable uploading of the reply, as also access to the notices and related documents.
18. The present writ petition is disposed of in above terms. All the pending applications, if any, are also disposed of.
PRATHIBA M. SINGH JUDGE SHAIL JAIN JUDGE OCTOBER 8, 2025/kk/sm