JM Traders Vs Union of India (Delhi High Court)
Delhi High Court has set aside a demand order issued against JM Traders, emphasizing the fundamental principles of natural justice, specifically the right to a personal hearing and the requirement for a speaking order. The court found that the adjudication process was “mechanical” and that the petitioner was denied an opportunity to be heard before the impugned order was passed.
JM Traders had approached the High Court under Articles 226 and 227 of the Constitution of India, challenging a show cause notice (SCN) dated May 28, 2024, issued by the Additional Commissioner, CGST, Delhi West, for the Financial Year 2019-20. The challenge also extended to the consequent order dated August 28, 2024, passed by the Sales Tax Officer Class II/AVATO, Delhi. Furthermore, the petition contested the legality of Notification No. 9/2023-Central Tax dated March 31, 2023, and Notification No. 56/2023-Central Tax dated December 28, 2023 (referred to as ‘impugned notifications’).
The validity of these notifications has been a contentious issue across various High Courts in India, with the matter currently awaiting a definitive pronouncement from the Supreme Court. The Delhi High Court itself has been deliberating on a batch of similar petitions, led by P.(C) 16499/2023 titled ‘DJST Traders Pvt. Ltd. vs. Union of India and Ors.’.
