Delhi High Court annuls GST demand where Show Cause Notice was hidden under ‘Additional Notices Tab’

Background of the dispute

Hitachi Systems India Pvt. Ltd. approached the Delhi High Court under Articles 226 and 227 of the Constitution of India challenging:

  • An adjudication order dated 24 December 2023 passed by the Sales Tax Officer Class II/AVATO, Ward 202, Zone 11, Delhi, and
  • A connected Show Cause Notice dated 28 September 2023 for the period July 2017 to March 2018.

In addition to the challenge to these specific proceedings, the assessee also questioned the constitutional validity of:

  • Notification No.09/2023-Central Tax dated 31 March 2023; and
  • Notification No.09/2023-State Tax dated 22 June 2023.

These two notifications (collectively referred to in the judgment as “the impugned notifications”) relate to the extension of limitation periods under the GST framework.

The core grievance of the assessee was not only about the vires of the notifications, but more fundamentally about lack of effective notice and opportunity of hearing. The assessee asserted that both the Show Cause Notice (SCN) and the adjudication order were only uploaded under the “Additional Notices Tab” on the GST portal and were never visible to it in the usual course, resulting in:

  • No reply to the SCN being filed, and
  • An ex parte order being passed without any actual hearing.

Wider litigation on limitation extension notifications

Parallel challenges across High Courts

The Delhi High Court noted that the present petition is part of a larger batch of cases where the same or similar notifications have been assailed. One such lead matter was W.P.(C) No. 16499/2023 titled DJST Traders Private Limited v. Union of India & Ors. In that batch, on 22 April 2025, the Court recorded extensive submissions on the legality of the limitation-extension notifications and passed an interim order summarising the key issues:

  • The challenge is centered around the interpretation of Section 168A of the Central Goods and Services Tax Act, 2017, which permits extension of time limits on the recommendation of the GST Council.
  • For Notification No.09/2023 (Central Tax), recommendations of the GST Council preceded the notification.
  • For Notification No.56/2023 (Central Tax), it was argued that the notification was issued first, and the Council’s ratification came only later, allegedly contrary to Section 168A.
  • As regards the State notification Notification No.56 of 2023 (State Tax) issued on 11 July 2024, the contention was that it was promulgated after the expiry of limitation under Notification No.13 of 2022 (State Tax).

The Court further recorded that:

  • The Allahabad High Court upheld the validity of Notification No.09/2023 (Central Tax).
  • The Patna High Court upheld Notification No.56/2023 (Central Tax).
  • The Guwahati High Court struck down Notification No.56/2023 (Central Tax).

The Telangana High Court, while avoiding a full-blown constitutional ruling, made serious observations regarding the invalidity of Notification No.56/2023 (Central Tax). That decision is now pending before the Supreme Court in S.L.P No 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors.

The Supreme Court, by its order dated 21 February 2025 in that SLP, framed the key issue as:

Whether the time limit for adjudication of show cause notices and passing orders under Section 73 of the GST Act and the corresponding provisions under the Telangana GST Act for the financial year 2019-2020 could be extended by issuing Notifications under Section 168A of the GST Act.

It also noted that multiple ancillary questions and conflicting decisions of different High Courts exist, and therefore issued notice in the SLP and on the interim relief application.

Approach of other High Courts and effect on Delhi

The Delhi High Court also took note of the order of the Punjab and Haryana High Court dated 12 March 2025, where an entire group of petitions challenging the same set of notifications was disposed of by directing that: