Fone Zone Nxt Vs Commissioner of DGST (Delhi High Court)
The petitions before the Delhi High Court challenged ex-parte orders passed under Section 73 of the Delhi GST Act, provisional attachment of bank accounts, and sought permission to file appeals against the Order-in-Original dated 25.12.2023. Since all petitions involved a common issue, they were clubbed and decided together, with one case treated as the lead matter. The petitioner was engaged in the business of mobile phones and accessories and had obtained GST registration on 1 July 2017. The petitioner claimed to have filed regular returns and stated that the GST portal reflected the email address of his Chartered Accountant. The GST registration was suspended at the petitioner’s request, following which show cause notices were issued for multiple assessment years alleging mismatch of input tax credit and issues arising from retrospective cancellation of suppliers’ registrations. As the petitioner neither filed replies nor attended personal hearings, ex-parte orders were passed raising demands, including one of ₹2,32,166.
Before the Court, the petitioner contended that the failure to respond was due to the Chartered Accountant not communicating the notices, and argued that he should not be penalised for this lapse. He offered to deposit 50% of the outstanding demand and sought a fresh opportunity of hearing. The respondent opposed the petitions, submitting that the department acted strictly in accordance with law and that the petitioner was aware that the GST registration was linked to the Chartered Accountant’s email, making it his responsibility to remain vigilant.
