Improper Service of Show Cause Notices Violates Natural Justice; Orders Set Aside and Matter Remanded

The HC held that the Show Cause Notices (SCNs) dated 23rd September, 2023 and 4th December, 2023 were not properly served as they were uploaded only on the 'Additional Notices Tab' and were inaccessible to the Petitioner, violating natural justice. Although the SCN dated 27th May, 2024 was properly uploaded, it was missed by the Petitioner. The impugned orders were set aside, and the matter was remanded to the Adjudicating Authority for fresh adjudication on merits. The Petitioner was granted time until 31st August, 2025, to file replies to the SCNs. The petition was disposed of accordingly.

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ISSUES:

Whether leave to amend writ petitions to challenge subsequent notifications dated 31st March, 2023 and 28th December, 2023 can be granted under Order VI Rule 17 CPC.Validity of Notification No. 09/2023-Central Tax and Notification No. 56/2023-Central Tax issued under Section 168A of the Central Goods and Services Tax Act, 2017.Whether the impugned Show Cause Notices and reminder notices uploaded only on the 'Additional Notices Tab' of the GST portal constitute proper service and provide adequate opportunity to the Petitioner to file replies and be heard.Whether the adjudication orders passed ex-parte due to non-receipt or non-accessibility of notices should be set aside and the matters remanded for fresh adjudication.Extent to which interim relief can be granted pending final adjudication of the validity of the impugned notifications before the Supreme Court.

RULINGS / HOLDINGS:

Leave to amend writ petitions under Order VI Rule 17 CPC to add challenge to the impugned notifications dated 31st March, 2023 and 28th December, 2023 was allowed, "leaving all objections open."The validity of the impugned notifications is presently sub judice before the Supreme Court, and this Court refrained from expressing any opinion on their vires, leaving the issue "open" and subject to the Supreme Court's decision.The uploading of Show Cause Notices and reminder notices solely on the 'Additional Notices Tab' without proper communication did not constitute adequate service, resulting in denial of opportunity to the Petitioner to file replies and be heard.Adjudication orders passed ex-parte due to non-receipt or non-accessibility of notices were set aside, and the matters were remanded to the Adjudicating Authority for fresh adjudication on merits after providing opportunity to the Petitioner to file replies and appear for personal hearings.The Court directed that future hearing notices shall not be merely uploaded on the portal but also communicated by email and mobile to ensure effective notice and opportunity to be heard.Access to the GST portal shall be provided to the Petitioner to enable uploading of replies and access to notices and related documents.All orders passed by the Adjudicating Authority shall be subject to the outcome of the Supreme Court's decision in S.L.P No. 4240/2025 concerning the validity of the impugned notifications.

RATIONALE:

The Court applied the procedural provisions under Order VI Rule 17 CPC to permit amendment of pleadings to include challenges to subsequent notifications.The legal framework concerning the validity of the impugned notifications arises under Section 168A of the Central Goods and Services Tax Act, 2017, which mandates prior recommendation of the GST Council for extending time limits for adjudication.There is a noted divergence of judicial opinions across various High Courts regarding the validity of the impugned notifications, with the Supreme Court having issued notice and interim orders in the related S.L.P No. 4240/2025, reflecting ongoing judicial scrutiny and doctrinal uncertainty.The Court relied on precedents emphasizing the necessity of effective service of Show Cause Notices and the fundamental principle that no adjudication order should be passed in default without affording a fair opportunity to be heard, referencing prior decisions where matters were remanded for fresh hearings due to improper notice.The Court's approach reflects a doctrinal emphasis on procedural fairness and natural justice in tax adjudication proceedings, while deferring substantive validity issues of the notifications to the Supreme Court to maintain judicial discipline and avoid conflicting rulings.

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