M/S. Nhd Motors vs The Government Of N.C.T. Of Delhi And Anr.
- Court
- Delhi High Court
$~60
* IN THE HIGH COURT OF DELHI AT NEW DELHI
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Date of decision: 15 April, 2026
+ W.P.(C) 17505/2025
M/S NHD MOTORS
HAVING ITS REGISTERED PLACE OF BUSINESS AT
KHASRA NO. 154/371, NEAR SHIVAM VATIKA, NEW DELHI,
NORTH WEST DELHI, DELHI – 110039, THROUGH ITS
AUTHORIZED SIGNATORY
..... PETITIONER
Through: Mr. Pranjal Shukla and Mr. Srikant,
Advs.
versus
1. THE GOVERNMENT OF N.C.T. OF DELHI
THROUGH ITS SECRETARY (FINANCE), GOVERNMENT OF
N.C.T. OF DELHI AT NEW DELHI
..... RESPONDENT NO.1
2. SALES TAX OFFICER CLASS II/AVATO,
JURISDICTION: WARD 63, ZONE 6, DELHI,
DELHI
..... RESPONDENT NO.2
Through: Mr. Sumit K. Batra and Ms. Priyanka
Jindal, Advs. for GNCTD.
CORAM:
HON'BLE MR. JUSTICE NITIN WASUDEO SAMBRE
HON'BLE MR. JUSTICE AJAY DIGPAUL
JUDGMENT (ORAL)
AJAY DIGPAUL, J.
1. The present petition has been filed by the petitioner, M/s NHD Motors
under Article 226 of the Constitution of India, challenging the Show Cause
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Signed By:SHILPI
Signing Date:20.04.2026
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Notice dated 9 December, 2023 (‘ SCN ’) pertaining to the Financial Year
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2018-19, as also the consequent order dated 5 April, 2024 passed by the
office of Sales Tax Officer, Class II/AVATO, Ward 63, Zone 6, Delhi ( „the
impugned order ’).
2. The petitioner is a partnership firm and is duly registered under the
GST regime with GSTIN No. 07AAMFN6084D1Z3.
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3. An SCN was issued on 9 December, 2023 in respect of Financial
Years 2018-19 under Section 73 of the Delhi Goods and Services Tax Act,
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2017. No reply was filed by the petitioner and the impugned order dated 5
April, 2024 has been passed raising a demand to the tune of ₹23,67,282/-.
4. Learned counsel for the petitioner submits, on facts that the SCN
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dated 9 December, 2023, from which the impugned order arises, was
uploaded on the „Additional Notices Tab‟ . Therefore, the same was not
brought to the knowledge of the petitioner, due to which no reply was filed.
Hence, the impugned order was passed without providing the petitioner with
an opportunity to challenge the case on merits. According to the petitioner,
the GST Department has also mis-calculated the amount and that no excess
Input Tax Credit has been availed/claimed by them.
5. The Court has heard the parties. In fact, this Court in Neelgiri
Machinery through its Proprietor Mr. Anil Kumar v. Commissioner Delhi
Goods And Service Tax And Others, W.P.(C) 13727/2024 , under similar
circumstances where the SCN was uploaded on the „Additional Notices Tab‟
had remanded the matter in the following terms:
“6. Be that as it may, intention is to ensure that the
Petitioner is given an opportunity to file its reply and is
heard on merits and that orders are not passed in default.
Since there is no clarity on behalf of the Department, this
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Signed By:SHILPI
Signing Date:20.04.2026
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Court follows the order dated 9th September, 2024 in
Satish Chand Mittal (Trade Name National Rubber
Products) vs. Sales Tax Officer SGST, Ward 25-Zone 1
as also order dated 23rd December, 2024 in Anant Wire
Industries vs. Sales Tax Officers Class II/Avato, Ward 83
& Anr (W.P.(C) 17867/2024; DHC) where the Court
under similar circumstances has remanded back the
matter to ensure the Noticee/Petitioners get a fair
opportunity to be heard. The order of the Court in
Sathish Chand Mittal (Supra) reads as under:
“4. It is the petitioner‟s case that he had not
received the impugned SCN and, therefore, he
had no opportunity to respond to the same.
For the same reason, the petitioner claims that
he had not appear for a personal hearing
before the Adjudicating Authority, which was
scheduled on 17.10.2023 and later
rescheduled to 30.11.2023 as per the
Reminder.
5. The petitioner also states that the impugned
SCN, the Reminder and the impugned order
are unsigned.
6. Mr. Singhvi, the learned counsel appearing
for the respondent, on advance notice,fairly
states that the principal issue involved in the
present case is squarely covered by the
decisions of this Court in M/s ACE
Cardiopathy Solutions Private Ltd. v. Union of
India & Ors.: Neutral Citation No.
2024:DHC:4108-DB as well as in Kamla
Vohra v. Sales Tax Officer Class II/ Avato
Ward 52 : Neutral Citation
No.2024:DHC:5108- DB.
7. He states that possibly, the petitioner did
not had the access of the Notices as they were
projected on the GST Portal under the tab
‘Additional Notices & Orders’. He submits
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Signed By:SHILPI
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that the said issue has now been addressed
and the ‘Additional Notices & Orders’ tab is
placed under the general menu and adjacent
to the tab ‘Notices & Orders’.
8. In view of the above, the present petition is
allowed and the impugned order is set aside.
9. The respondent is granted another
opportunity to reply to the impugned SCN
within a period of two weeks from date. The
Adjudicating Authority shall consider the same
and pass such order, as it deems fit, after
affording the petitioner an opportunity to be
heard. 10. The present petition is disposed of
in the aforesaid terms. 11. All pending
applications are also disposed of.”
7. The impugned demand orders dated 23rd April, 2024
and 5th December, 2023 are accordingly set aside. In
response to show cause notices dated 04th December,
2023 and 23th September, 2023, the Petitioner shall file
its replies within thirty days. The hearing notices shall
now not be merely uploaded on the portal but shall also
be e-mailed to the Petitioner and upon the hearing notice
being received, the Petitioner would appear before the
Department and make its submissions. The show cause
notices shall be adjudicated in accordance with law.
8. The petitions are disposed of in the above terms. The
pending application(s), if any, also stand disposed of.”
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6. There is no dispute that, after 16 January, 2024, certain changes were
introduced on the GST portal and the ‘ Additional Notices Tab‟ was made
visible. However, in the present case, the SCN had been issued prior to the
said date. In such circumstances, and considering that the petitioner was not
afforded a proper opportunity of hearing and had not filed any reply to the
SCN, this Court is of the view that the matter deserves to be remanded to the
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concerned Adjudicating Authority.
7. Learned counsel for the respondent has contended that, although the
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SCN was admittedly issued prior to 16 January, 2024, a reminder calling
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upon the petitioner to furnish a reply was issued on 27 February, 2024, that
is, after the said date.
8. This Court is unable to agree with the aforesaid contention of the
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respondent. The reminder pertained to the SCN uploaded prior to 16
January, 2024 in the same ‘ Additional Notices Tab‟ in which the SCN itself
had been uploaded, a tab, in which the SCN was not visible to the petitioner.
In such circumstances, where the SCN itself was never effectively served
upon the petitioner, any subsequent communication styled as a reminder in
respect thereof cannot, in law, be treated as a valid or effective reminder to
the said SCN.
9. In view of the above, the impugned order is set aside. The petitioner is
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granted time till 8 May, 2026, to file the reply to SCN. Upon filing of the
reply, the Adjudicating Authority shall issue a notice for personal hearing to
the petitioner. The personal hearing notice shall be duly communicated to
the petitioner.
10. The reply filed by the petitioner to the SCN along with the
submissions made in the personal hearing proceedings shall be duly
considered by the Adjudicating Authority and a fresh order with respect to
the SCN shall be passed.
11. All rights and remedies of the parties are left open. Access to the GST
Portal, shall be provided to the petitioner to enable uploading of the reply as
also access to the notices and related documents.
12. The present writ petition is disposed of in above terms. All the
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Signed By:SHILPI
Signing Date:20.04.2026
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pending applications, if any, are also disposed of.
AJAY DIGPAUL
(JUDGE)
NITIN WASUDEO SAMBRE
(JUDGE)
APRIL 15, 2026/ AS/yr
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Signed By:SHILPI
Signing Date:20.04.2026
18:27:11