The High Court of Madras,grants time to RAU’s IAS Study Circle to file a reply to the Goods and Service Tax (GST) show cause notice (SCN), noting that the institute was unable to respond due to tragic events, including the CEO’s custody.

RAU S IAS Study Circle,petitioner-assessee, challenged the show cause notice dated 21st May 2024 and the order issued on 22nd August 2024. The petition also questioned four notifications, two central tax notifications dated 31st March 2023 and 28th December 2023, and two state tax notifications dated 22nd June 2023 and 11th July 2024.

The validity of the impugned notifications was already being considered in a batch of petitions led by DJST Traders Pvt. Ltd. vs. Union of India. The Court heard the matter on 22nd April 2025 and noted that the main issue was whether the notifications were issued without proper GST Council approval as required under Section 168A of the CGST Act.

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Different High Courts had given conflicting views,some upheld the notifications, while others quashed them. The matter was already pending before the Supreme Court in SLP No. 4240/2025.

The Delhi High Court also noted that many petitioners could not respond to show cause notices or attend hearings, leading to ex-parte orders. It identified six types of cases and indicated that relief could be given based on the facts, without deciding the validity of the notifications at this stage. Parties were asked to respond by 23rd April 2025.

On 23rd April 2025, the Court disposed of several petitions after addressing the specific factual issues in each case, noting that the validity of the impugned notifications was already under consideration by the Supreme Court in SLP No. 4240/2025. It also made it clear that the outcome of the Supreme Court case would decide the validity of those notifications.

However, petitions challenging the corresponding State notifications were kept pending. The lead case in that group was W.P.(C) 9214/2024,Engineers India Limited v. Union of India & Ors.

In the instant matter, the petitioner institute, engaged in civil services exam coaching, stated that it could not respond to the show cause notice and reminder dated 22nd August 2024 due to tragic events on 27th July 2024, including the arrest of its CEO, who was later released on bail.

Considering the circumstances, the Court set aside the impugned order and allowed the petitioner to file a reply to the show cause notice by 31st August 2025. The portal was to be enabled within a week, and the personal hearing notice was to be sent to the petitioner’s email and mobile number.

Justice Prathiba M.Singh and Justice Rajneesh Kumar Gupta directed that the matter be adjudicated as per law after considering the reply. It also clarified that the validity of the impugned notifications remained open and would depend on the outcome of the Supreme Court case in SLP No. 4240/2025 and this Court’s decision in W.P.(C) 9214/2024.

All rights and remedies were kept open, and the petition was disposed of.

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