GST Portal Glitch Generates Personal Hearing Notice after Appeal Decision: Delhi HC Sets Aside Order-in-Appeal [Read Order]
A notice generated on 1st July, 2025, scheduled a hearing for 2nd July, 2025, after the appeal had already been decided, apparently due to a system error.
The High Court of Delhi, set aside the Order-in-Appeal dated 30th June, 2025, after noting that the Goods and Service Tax ( GST ) portal glitch generated a personal hearing notice after the appeal had already been decided.
A. L. Exports, petitioner-assessee,filed a refund claim of Rs. 36,61,166/- for Input Tax Credit ( ITC) on exports of goods and services without payment of integrated tax. The Assistant Commissioner, CGST, rejected the claim on 24th January, 2025, stating that the petitioner had not submitted the required documents, including E-way bills, shipping bills, and BRCs.
The petitioner appealed the order, and personal hearing notices were issued by speed-post. The petitioner did not attend these hearings for reasons that were not clear. Later, on 1st July, 2025, the petitioner received another notice on the GST portal scheduling a personal hearing on 2nd July, 2025, which also mentioned that previous hearings held on 4th March, 12th March, and 2nd April, 2025, were unattended, and the notice was issued due to system requirements.
When the petitioner appeared on 2nd July, 2025, the Appellate Authority informed them that the appeal had already been decided on 30th June, 2025, and a copy of the Order-in-Appeal was served. Additionally, personal hearing notices dated 17th February, 5th March, and 17th March, 2025, were also handed over physically to the petitioner along with copies of the Order-in-Appeal.
The petitioner counsel contended that the hearing notice issued on 1st July, 2025, for 2nd July, 2025, showed that the Order-in-Appeal had already been passed, which violated the principles of natural justice.
The respondent’s counsel, stated that the personal hearing notices had been issued, filed with the writ, and sent by speed-post, with DIN numbers recorded on each notice.
Justice Prathiba M Singh and Justice Shail Jain heard the counsels and noted that the petitioner was not given an opportunity to be heard in the appeal. It was observed that hearing notices were not uploaded on the GST portal and were only sent by speed-post, with uncertainty about email delivery.
The high court noted that when the first hearing notice was uploaded on 1st July, 2025, the petitioner appeared on 2nd July, 2025, but the Order-in-Appeal had already been passed. A subsequent hearing notice appeared to have been generated due to a system error.
The court held that the petitioner deserved a hearing on merits. The impugned Order-in-Appeal dated 30th June, 2025, was set aside. The appeal against the Order-in-Original was to be heard afresh after providing hearing to the petitioner at the given email and mobile number. The Appellate Authority was directed to pass a reasoned order thereafter.
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