Delhi HC Grants Belated GST Appeal Remedy u/s 107 Act due to Procedural Lapses in Adjudication [Read Order]
The appeal was accompanied by a challenge to Central Tax Notifications which were left open by the High Court impending Supreme Court decision in the same matter
![Delhi HC Grants Belated GST Appeal Remedy u/s 107 Act due to Procedural Lapses in Adjudication [Read Order] Delhi HC Grants Belated GST Appeal Remedy u/s 107 Act due to Procedural Lapses in Adjudication [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/GST-Appeal-Delhi-High-Court-Procedural-Lapses-in-Adjudication-taxscan.jpg)
The Delhi High Court recently permitted an aggrieved petitioner to avail of the appellate remedies as enshrined under Section 107 of the Central Goods and Services Tax (CGST) Act, 2017 observing procedural lapses that had occurred during the adjudication process.
The petitioner, Shudh Hospitality Private Limited had filed a civil writ petition challenging a Show Cause Notice (SCN) dated September 24, 2023, and the consequential demand order dated December 30, 2023, issued by the Sales Tax Officer, Ward-44, Delhi.
The petition also included a challenge to Notifications No. 56/2023 and 9/2023-Central Tax; however, the Court left that issue open, noting its pendency before the Supreme Court in S.L.P No. 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors.
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Akshay Allagh, appearing for Shudh Hospitality Private Limited contended that the primary issue laid with the impugned SCN itself, which was issued on 24th September, 2023 had mentioned the same date for the petitioner to file their reply - effectively denying the petitioner a reasonable opportunity to respond to the SCN.
Meanwhile, K.G. Gopalakrishnan, Lalltaksh Joshi and Ananya Sanjiv Saraori represented the Revenue and submitted that a reply had indeed been filed by the petitioner on October 28, 2023, and that the petitioner’s accountant had even appeared on December 24, 2023 - thus indicating the provision of an adequate opportunity of hearing and proper order therein.
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The Division Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta considered the sequence of events and observed that despite the initial defect in the timeline of the SCN, the petitioner was ultimately given an opportunity to submit a reply, which they did.
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It was further noted that the Petitioner’s accountant had also appeared before the adjudicating authority in a hearing held on 24 December, 2023.
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Nevertheless, the Delhi High Court found that the sequence of events laid prejudice to the purpose of the adjudicatory process and permitted the petitioner to avail of the appellate remedy under Section 107 of the Central Goods and Service Tax Act, 2017 – albeit belatedly.
To Read the full text of the Order CLICK HERE
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