The Delhi High Court quashed an adjudication order against M/s Rama Electrical Co. due to improper service and lack of a personal hearing, remanding the case for reconsideration. The issue arose from a show cause notice issued for the fiscal year 2017–18, which was based on discrepancies in the annual return filed in Form GSTR-9. The notice and subsequent adjudication order were only uploaded on the GST common portal, with no separate communication or personal hearing granted to the petitioner.
The petitioner challenged the validity of the service method and the denial of a personal hearing, arguing that these actions violated the principles of natural justice. The High Court agreed, ruling that merely uploading a notice or order on the GST portal does not fulfill the requirement of valid service under GST law. The absence of a personal hearing before issuing an adverse order was deemed a violation of natural justice principles.
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As a result, the Court set aside the adjudication order, noting that the proceedings were flawed due to the lack of proper service and opportunity for the petitioner to be heard. The case was sent back to the department with instructions to provide a hearing and issue a fresh, reasoned order in compliance with legal standards.
Parties: M/s Rama Electrical Co. v. Union of India & Ors.
Order Date: 06 January 2026
Facts –
- The petitioner was issued a show cause notice alleging tax liability for FY 2017–18 based on discrepancies noticed from the annual return filed in Form GSTR-9.
- The show cause notice and the adjudication order were uploaded only on the GST common portal without any separate or effective communication to the petitioner.
- No personal hearing was granted before passing the adjudication order raising a tax demand against the petitioner.
- Aggrieved by the portal-based service and denial of opportunity, the petitioner approached the High Court.
Issue –
- Whether uploading a show cause notice and adjudication order only on the GST portal, without granting personal hearing, amounts to valid service under the GST law?
Order –
- The High Court held that mere uploading of a notice or order on the GST portal does not constitute valid or effective service on the taxpayer.
- It observed that denial of personal hearing before passing an adverse order violates principles of natural justice.
- The Court found that the adjudication proceedings stood vitiated due to lack of proper service and opportunity.
- Accordingly, the impugned adjudication order was set aside.
- The matter was remanded to the department with directions to grant opportunity of hearing and pass a fresh reasoned order in accordance with law.
