'Infraction Of Natural Justice': Delhi High Court On One-Day Notice Given For Personal Hearing Against GST Demand

The Delhi High Court has said that granting mere one-day notice to an assessee for attending personal hearing with respect to proposed GST demands amounts of 'infraction' of natural justice.

The observation was made by a division bench of Justices Prathiba M. Singh and Saurabh Banerjee while hearing Petitioner-firm's challenge to dismissal of its appeal against demand on the ground of it being barred by delay.

The demand was raised in respect of certain short payments and difference in Input Tax Credit as also difference in tax liability reported in GSTR-I (monthly/quarterly return) and GSTR-3B (summary return) along with interest.

The grievance of the Petitioner was that the notice of personal hearing was issued on 20th August, 2025 giving date of hearing on 21st August, 2025.

Thereafter, the impugned order was passed within a week on 18th August 2025.

Similarly, notice was again issued on 2nd September, 2025 with the date of personal hearing fixed on 3rd September, 2025.

Petitioner submitted that it could not appear as there was only a notice period of one day for appearance.

So far as delay in preferring the appeal is concerned, the Petitioner submitted that the documents were with the Counsel who was ill and could not file the appeal.

The High Court observed that the appeal was rightly dismissed as the Appellate Authority does not have the power to condone the delay.

However, it condoned the delay subject to deposit of Rs. 20,000/- “since there was an infraction of principles of natural justice due to one day's notice”.

Appearance: Mr. Pranay Jain, Adv. for Petitioner; Mr. Akash Verma, Sr. Standing Counsel, CBIC with Ms. Aanchal Uppal, Adv. for Respondent

Case title: M/S Arjun Engineering Co. v. Additional Commissioner Of Goods And Service Tax, North Delhi

Citation: 2025 LiveLaw (Del) 1586

Case no.: W.P.(C) 17680/2025

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