Procedural Issues Like Refund Delays, Non-Communication can be Disposed on First Hearing If Dept Gives Instructions to Counsels: Delhi HC [Read Order]

Recently, the Delhi High Court, in a writ petition, has provided directions to the GST ( Goods and Services Tax) department regarding the disposal of procedural matters on the first day of hearing.

The bench observed that procedural lapses, such as refund delays and non-communication of notices in GST matters, can be effectively resolved at the very first hearing, provided the concerned Department issues timely instructions to its counsels.

The Petitioner alleged that their written submissions were not taken into consideration by Respondent No. 1 and that no notice for personal hearing was served.

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In response, the Court directed the Petitioner to place on record a screenshot from the GST portal evidencing the submission of the written representations. Simultaneously, the Respondent Department was instructed to furnish proof from the GST portal regarding the manner in which the notice for the personal hearing was communicated.

The Court has noted that there are a large number of GST related matters, which are being filed before this Court on a daily basis. The issues, which are raised by the Petitioners, are both procedural and substantive.

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The bench observed that procedural irregularities include instances of non-receipt of replies, non-communication of personal hearing notices, and failure to receive emails or other official correspondence. Additionally, delays in processing refund applications have emerged as a recurring grievance among taxpayers. According to the court, such procedural matters, if backed by appropriate records and cooperation from the Department, can be disposed expeditiously, even on the first date of hearing. However, this is contingent upon the Department’s ability to issue clear and timely instructions to their legal counsels.

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Accordingly, the Court impressed upon the Principal Chief Commissioner of CGST & Central Excise, Delhi Zone, to consider deputing at least two officers from the litigation section. These officers would serve as liaisons with various Commissionerates under the GST department to ensure quick coordination and instruction to counsels.

The matter is now scheduled to be listed on 21st April 2025.

To Read the full text of the Order CLICK HERE

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