HC Remands GST Case Over Order Without Reply

Case Details: Cristoo Arora vs. Union of India - [2025] 174 taxmann.com 825 (Delhi)

Judiciary and Counsel Details

• Pratibha M. Singh & Rajneesh Kumar Gupta, JJ.
• Nikhil Goyal & Bankim Garg, Advs. for the Petitioner.
• Ms Vaishali Gupta, Adv. for the Respondent.

Facts of the Case

The petitioner was issued a show cause notice under Section 73 of the CGST and Delhi GST Act. Without filing a reply to the said notice, the petitioner approached the Hon’ble High Court by filing a writ petition challenging the show cause notice and the related notifications.

Despite the pendency of this writ petition, the adjudicating authority proceeded to pass an order confirming the demand raised in the show cause notice. The petitioner submitted that due to the pendency of the writ and circumstances prevailing at the relevant time, they were unable to file a reply to the show cause notice and thus were deprived of the opportunity to contest the demand on merits.

High Court Held

The Hon’ble High Court held that, in light of the fact that the petitioner was unable to file a reply when the adjudication proceedings were underway and the matter was sub judice before the Court, one opportunity ought to be afforded to the petitioner to respond to the show cause notice and contest the demand. It was further observed that the denial of such opportunity would be contrary to principles of natural justice. Accordingly, the impugned adjudication order was set aside and the matter was remanded to the proper officer for re-adjudication after granting the petitioner sufficient opportunity to file a reply and be heard.

List of Cases Referred to

• DJST Traders (P.) Ltd. v. Union of India [2025] 174 taxmann.com 191 (Delhi) (para 4)
• HCC-SEW-MEIL-AAG JV v. Asstt. Commissioner of State Tax [S.L.P No. 4240 of 2025, dated 21-2-2025] (para 5).