Sai Overseas Vs Union of India & Ors. (Delhi High Court)
Ex Parte GST Order Set Aside
The Delhi High Court considered a challenge to an order dated 18.02.2025 passed under Section 73 of the CGST Act, 2017. The petitioner had been proceeded against ex parte pursuant to a show cause notice dated 20.11.2024 that was uploaded on the web portal.
Reliance on Luxmi Traders
The Court referred to Luxmi Traders v. Union Territory of Chandigarh & Ors., (2026) 44 Centax 371 (P&H), where it was held that service of an SCN cannot be deemed sufficient merely because it is uploaded on the Common Portal unless receipt is acknowledged or a reply is filed. Where an ex parte order follows portal-only service without a reply, proceedings are to be restored to the SCN stage, with an opportunity to file a reply and be heard.
The respondents submitted that proceedings alleging fraud had also been initiated under Section 74 of the CGST Act.
Matter Remitted for Fresh Adjudication
In view of the ex parte order having followed the portal-only uploading of the SCN, the Delhi High Court remitted the matter to the Adjudicating Authority for fresh adjudication in accordance with the directions in Luxmi Traders. The authority was permitted to consider the proceedings stated to have been initiated under Section 74.
