Duplication of GST Order in Portal: Delhi HC allows opportunity to Reply on SCN [Read Order]

The petitioner, Raks Trade Logistics Pvt. Ltd. sought for setting aside of the show cause notice dated 20th November, 2024 and the demand order dated 19th February, 2025. This is a case where a demand to the tune of Rs.5,42,63,640/- has been raised upon the petitioner with the following components i.e., • tax Rs. 2,94,45,165/-, • interest of Rs. 2,18,53,959 and • penalty of Rs. 29,64,516/-.

The petition arises out of a show cause notice issued by the Respondent on 20th November, 2024, claiming that the Petitioner has not correctly availed of input tax on his inward supplies on reconciliation of turnovers in GSTR-09 and also that ITC has been claimed for cancelled dealers, return defaulters non-tax payers.

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A reminder notice was also issued in respect of the show cause notice and a date for personal hearing was also fixed. However, the Petitioner did not appear for the same and did not file any reply to the show cause notice either. This led to the passing of the demand order dated 19th February, 2025. The submission of Mr. Chinmaya Seth, counsel for Petitioner is that there is duplication in the final demand order and therefore, the amount which has been demanded has become doubled.

A perusal of the record would show that the petitioner has been completely recalcitrant in the present proceedings by not filing a reply to the show cause notice and not attending the personal hearing. Additionally, the challenge to the demand order has also been raised belatedly.

The only ground that has been given for the delay is that the employee who has access to the GST portal of the petitioner company failed to bring to the notice of the petitioner the necessary details of the proceedings that led to the passing of the demand order dated 19th February, 2025.

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A division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta considering the duplication in the final demand order dated 19th February, 2025, the Petitioner ought to be given a chance to file a reply to the show cause notice and an opportunity for a personal hearing also ought to be accorded.

However, in the facts of the case, costs of Rs. 25,000/- are imposed on the petitioner, which shall be deposited with the Delhi DGST Department to avail of its opportunity to file a reply and appear for a personal hearing. For the payment of costs, the DGST Department shall provide the account details to the petitioner.

Let the reply to the show cause notice dated 20th November, 2024, be now filed by the petitioner within one month. For the said purpose, the GST Portal of the Petitioner shall be opened within two days to provide access to the Petitioner. The court set aside the impugned adjudication order dated 19th February, 2025.

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