The Delhi High Court has set aside an ex-parte appellate order in the case of Tahiliani Design Pvt. Ltd. v. Joint Commissioner of Central Tax Appeals-II, Delhi, and others. The petitioner had challenged the Order-in-Appeal and the Order-in-Original, along with a notification that extended the limitation under Section 168A of the CGST Act. The validity of this notification is currently under review by the Supreme Court in a separate case.
The petitioner argued that the appellate order was issued without a valid personal hearing, which violates the principles of natural justice. Although the notice for a personal hearing was sent after the appellate order was passed, the court noted that the petitioner had been given multiple opportunities for a hearing, which were not utilized.
In light of the pending Supreme Court decision regarding the notification's validity, the High Court decided to set aside the appellate order and remand the matter back to the Appellate Authority. The court instructed the authority to conduct a fresh adjudication, ensuring an effective hearing is provided to the petitioner. The decision on the case will be contingent upon the outcome of the Supreme Court proceedings.
Order date: 24 Sept 2025
Parties: Tahiliani Design Pvt. Ltd. v. Joint Commissioner of Central Tax Appeals-II, Delhi & Ors.
Facts –
- The petitioner challenged the Order-in-Appeal (OIA) dated 14.05.2025 and the Order-in-Original (OIO) dated 23.08.2024, as well as Notification No. 56/2023–Central Tax, which extended limitation under Section 168A of the CGST Act.
- The validity of the notification was already under scrutiny before the Supreme Court in M/s HCC-SEW-MEIL-AAG JV v. Asst. Commissioner of State Tax (SLP No. 4240/2025).
- The petitioner contended that the notice for personal hearing was issued after the appellate order, violating natural justice.
Issue –
- Whether passing an appellate order without a valid personal hearing violates natural justice, and whether proceedings should continue while the validity of Notification No. 56/2023 is pending before the Supreme Court?
Order –
- The Court noted that though the personal hearing notice was technically issued post-order, multiple earlier opportunities were given which the petitioner failed to avail.
- However, considering the pending Supreme Court challenge on the same issue, the Court set aside the OIA and remanded the matter to the Appellate Authority for fresh adjudication.
- The authority was directed to provide an effective hearing and decide the case subject to the outcome of the Supreme Court proceedings.
