Kurlon Retail Limited Vs Sales Tax Officer & Ors. (Delhi High Court)
The Delhi High Court held that GST adjudication based on notices uploaded only on the “Additional Notices & Orders” tab of the GST portal, without effective communication or a meaningful opportunity of hearing, violates principles of natural justice. The case involved a ₹31.58 lakh demand for FY 2019–20 arising from disputed input tax credit, where the show cause notice, reminders, and order were not acted upon as no reply or hearing occurred. The Court stressed that fairness requires more than a technical portal upload; authorities must ensure actual notice and schedule a personal hearing, including communication through email or mobile. Although the tab was visible after January 16, 2024, the impugned order was passed without considering submissions. Accordingly, the ex-parte order was set aside and the matter remanded for fresh adjudication. The Court clarified that the outcome remains subject to the pending decision of the Supreme Court of India on the validity of GST limitation-extension notifications.
Facts:
Kurlon Retail Limited (“the Petitioner”) is a registered assessee under GST, facing a demand of ₹31.58 lakhs for the 2019-20 FY, involving disputed Input Tax Credit (ITC).
Sales Tax Officer & Ors. (“the Respondent”) issued a show cause notice (SCN), reminders, and adjudication order demanding the amount; these were only uploaded on the GST portal’s “Additional Notices & Orders” tab.
