The Punjab State Cooperative Milk Producers Federation LTD. vs. Additional Commissioner Central GST Delhi West Ward 45 Delhi & Ors.
Original PDF →Facts
The Petitioner, The Punjab State Cooperative Milk Producers Federation Ltd., filed a writ petition challenging an Order-In-Original dated January 30, 2025, passed under Section 74 of the CGST Act. The Petitioner contended that the Show Cause Notice (SCN) dated November 15, 2022, was only received on March 2, 2023. The Petitioner stated that the Department used three addresses, and the SCN was sent to an old address (East Patel Nagar) which had been inadvertently included in a director's detail update form in 2019. The Petitioner's current address is Karol Bagh. Due to this address confusion, the Petitioner claimed it did not receive personal hearing notices and thus could not argue its case before the Department. The Department noted that the Petitioner's own form contained the East Patel Nagar address.
Held
The Court decided to set aside the impugned Order-In-Original dated January 30, 2025, due to the unique facts of the case, primarily the Petitioner not having had an opportunity to personally appear and argue its matter before the Department. The Court noted that the Petitioner had received the SCN. A personal hearing notice was directed to be served upon the Petitioner at specified email addresses and also uploaded on the GST portal. The Court made it clear that if the email is received and the personal hearing is not attended, no further opportunity would be granted. The limitation period for passing an order pursuant to the SCN was waived. The Petitioner was directed to correct all its details on the GST portal within 15 days. The Petitioner gave up its challenge to the jurisdiction, and the adjudication of the SCN was directed to be undertaken by the Commissionerate, North, in terms of the Petitioner's Karol Bagh address.
Key Issues
1. Whether the impugned Order-In-Original dated January 30, 2025, passed under Section 74 of the CGST Act, is liable to be set aside on the grounds that the Petitioner did not receive the Show Cause Notice (SCN) in a timely manner due to an incorrect address being used by the Department? Petitioner's Arguments: The Petitioner argued that the SCN was not received promptly because it was sent to an old address (East Patel Nagar) which was inadvertently updated in a form in 2019, while the Petitioner's current and known address was Karol Bagh. This led to non-receipt of personal hearing notices, preventing them from presenting their case. They relied on the fact that the Department was aware of the Karol Bagh address through subsequent communications. Revenue's Arguments: The Revenue pointed out that the Petitioner's own form filed for updating director details contained the East Patel Nagar address, suggesting the Petitioner was aware of this address being on record. The Revenue did not explicitly argue against the Petitioner's claim of non-receipt of the SCN or personal hearing notices.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
$~98 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 28th April, 2025 + W.P.(C) 5349/2025 THE PUNJAB STATE COOPERATIVE MILK PRODUCERS FEDERATION LTD. .....Petitioner Through: Ms. Ananya Kapoor and Mr. Tarun Chanana, Advocates. versus ADDITIONAL COMMISSIONER CENTRAL GST DELHI WEST WARD 45 DELHI & ORS. .....Respondents Through: Mr. Akash Panwar, Advocate for R-1, 3 & 4. Mr. Ruchesh Sinha, Advocate for R-
CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE RAJNEESH KUMAR GUPTA Prathiba M. Singh, J. (Oral)
This hearing has been done through hybrid mode. CM APPL. 24371/2025 (for exemption)
Allowed, subject to all just exceptions. The application stands disposed of. W.P.(C) 5349/2025 & CM APPL. 24370/2025
The Petitioner Federation has filed the present writ petition under Articles 226 and 227 of the Constitution of India challenging the impugned Order-In-Original dated 30th January, 2025 (hereinafter “the impugned order”) passed under Section 74 of the Central Goods and Services Tax, 2017 (hereinafter “the CGST Act”).
The allegation of the Petitioner is that the Show Cause Notice which was issued on 15th November, 2022 (hereinafter “SCN”) was received by the Petitioner for the first time vide letter dated 02nd March, 2023. 5. The case of the Petitioner is that there are three addresses that are being used by the Department qua the Petitioner. The said address are: (i) Ground and Upper Ground Floor, 5751, D.B.Gupta Road, Dev Nagar, Karol Bagh, Central Delhi, Delhi, 110005; (ii) G.F. 1/3, East Patel Nagar, Central Delhi and (iii) LSC DDA Market, Shop No. 68, 71, 72, D-Block, Prashant Vihar, New Delhi.
It is submitted by Ms. Ananya Kapoor, ld. Counsel for the Petitioner that out of these three addresses, the current address of the Petitioner is the Karol Bagh address. However, it is stated that the Petitioner had filed a form for changing details of one its Directors, which was uploaded earlier in 2019. In the said form the address of East Patel Nagar appears to have been inadvertently included in the said form.
Since the SCN was sent at the Patel Nagar Address, the Petitioner did not receive the same earlier. The same was received by the Petitioner only when the letter dated 02nd March, 2023 was received. The Petitioner then filed its reply to the SCN and also wrote to the Commissionerate, West on 15th May, 2023, stating that the original SCN was not received and was also not uploaded on the GST portal. A detailed reply was also submitted thereafter.
Ms. Ananya Kapoor, ld. Counsel for the Petitioner submits that the Department is well aware of the Karol Bagh address of the Petitioner, which is evident from the letter written on 02nd March, 2023, as also the subsequent letters of the Department. However, unfortunately, the confusion which has been caused qua the addresses has ensured that the personal hearing notices have not been served upon the Petitioner.
Mr. Akash Panwar, ld. Counsel for the Department has pointed out that the form which was filed to upload the correct details of the Director of the Petitioner itself gave the East Patel Nagar address. However, the ld. Counsel for the Petitioner submits that the Petitioner is not aware as to how the said address came to be updated on the said form.
Be that as it may, the Petitioner Federation being a milk producers’ society, it has not had an opportunity to personally appear and argue its matter before the Department, it is deemed appropriate to set aside the impugned order dated 30th January, 2025. 11. The SCN has already been received by the Petitioner. Let the personal hearing notice be now served upon the Petitioner at the following email address: bodelhi@verka.coop and acc.milkfed@verka.coop and the same shall also be uploaded on the portal.
It is made clear that if the email is received and the personal hearing is not attended, no further opportunity shall be granted to the Petitioner Federation. Only one opportunity is being granted in the unique facts of this case. The limitation in respect of passing of the order pursuant to the SCN, shall not apply in the facts of this case as well.
The Petitioner is directed to get all its details corrected on the GST portal within 15 days failing which the Department would not be blamed for future notices being sent at the wrong address.
Insofar as, the SCN having been issued by the Commissionerate West, in view of the East Patel Nagar address, the Petitioner gives up its challenge, if any, to the juri iction. The said show cause notice shall now be adjudicated by the Commissionerate, North in terms of the Karol Bagh address of the Petitioner.
The writ petition stands disposed of in above terms. Pending applications, if any, are also disposed of. PRATHIBA M. SINGH JUDGE RAJNEESH KUMAR GUPTA JUDGE APRIL 28, 2025 v/msh
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.