Abdul Gaffar Vs Union of India (Delhi High Court)
In a recent development, the Delhi High Court has set aside an order issued by the Goods and Service Tax (GST) authorities against Abdul Gaffar, directing the adjudicating authority to re-evaluate the matter after providing a personal hearing and considering the petitioner’s detailed reply. The decision, delivered in the case of Abdul Gaffar Vs. Union of India, highlights the importance of adhering to principles of natural justice, even as a broader legal challenge concerning the validity of certain GST notifications remains pending before the Supreme Court.
The petitioner, Abdul Gaffar, had approached the Delhi High Court under Article 226 of the Constitution of India, challenging a show cause notice dated September 27, 2023, issued for the Financial Year 2017-18, and the subsequent order dated December 28, 2023. A significant aspect of the petition also involved a challenge to the vires (legal authority) of Notification No. 9/2023-Central Tax dated March 31, 2023.
The High Court noted that the validity of Notification No. 9/2023, along with Notification No. 56/2023, was already under consideration in a batch of petitions, with the lead case being DJST Traders Pvt. Ltd. vs. Union of India and Ors. In those proceedings, extensive arguments were presented regarding whether the proper procedure, particularly the essential prior recommendation of the GST Council under Section 168A of the Central Goods and Services Tax Act, 2017, was followed before the issuance of these notifications.
