Ethos Limited vs. Assistant Commissioner Department Of Trade And Taxes Ward No 206 Zone 11 Delhi & Anr.
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The Petitioner, Ethos Limited, filed a writ petition challenging an order dated February 24, 2025, passed by the Assistant Commissioner, Department of Trade and Taxes, Delhi. This order was issued pursuant to a Show Cause Notice (SCN) dated November 30, 2024, under Section 73 of the Central Goods and Services Tax Act, 2017. The Petitioner contended that the SCN went into their junk email folder. A reminder was sent on February 22, 2025, at 20:15:15 IST, a Saturday, with the reply due by February 23, 2025 (Sunday) and a hearing scheduled for February 24, 2025, at 10:00 AM. The Petitioner's representative visited the office on February 24, 2025, seeking an extension, which was denied. An email was also sent by the Petitioner on the same day at 2:12 PM. The impugned order was passed ex-parte on February 24, 2025.
Held
The Court held that the chronology of events clearly revealed a violation of the Principles of Natural Justice. The Court found the scheduling of hearings on weekends with only a few hours granted to file a reply to be unfair and unjust. Consequently, the impugned order dated February 24, 2025, was set aside. The matter was remanded back to the concerned Adjudicating Authority. The Petitioner was granted permission to file a proper reply to the SCN by July 15, 2025. Following the filing of the reply, a personal hearing was to be afforded to the Petitioner by the Adjudicating Authority. The Adjudicating Authority was directed to pass an order in accordance with the law after considering the reply and submissions. All rights and contentions of both parties were left open.
Key Issues
1. Whether the impugned order dated February 24, 2025, passed under Section 73 of the Central Goods and Services Tax Act, 2017, violates the Principles of Natural Justice, specifically regarding the short notice period and the scheduling of the hearing on a weekend. Petitioner's arguments: The Petitioner argued that the notice period was unreasonably short, with the reminder issued on a Saturday evening for a reply due on Sunday and a hearing on Monday morning. They contended that this schedule, coupled with the denial of an extension and the subsequent ex-parte order, constituted a gross violation of the Principles of Natural Justice. They relied on the chronology of events to demonstrate the unfairness of the process. Revenue's arguments: The judgment records no specific arguments made by the Revenue or the State.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 23.05.2025
This hearing has been done through hybrid mode.
The present writ petition has been filed by the Petitioner under Article 226 and 227 of the Constitution of India challenging the impugned order dated 24th February, 2025 which was passed pursuant to Show Cause Notice (‘SCN’) dated 30th November, 2024 under Section 73 of the Central Goods and Services Tax Act, 2017. It is the case of the Petitioner that the impugned order has been passed in gross violation of the Principles of Natural Justice.
It is the case of the Petitioner that the said SCN had gone into the junk folder of the Petitioner’s e-mail. However, the reminder was issued on 22nd February, 2025 to the Petitioner regarding the same which read as under: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 20:42:59
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Ms. Kavita Jha, Ld. Senior Counsel appearing for the Petitioner submits that on 22nd February, 2025, the notice was issued at 20:15:15 IST which was a Saturday and the reply was to be submitted by 23rd February, 2025 which was a Sunday and the hearing was fixed for 24th February, 2025 at 10:00 A.M. The Authorised Representative of the Petitioner visited the Office of the DGST on 24th February, 2025 and asked for an extension of time to file the reply, however, the same was not granted. It is also informed that an e-mail in this regard was also addressed to the Department by the Petitioner on the same day i.e., 24th February, 2025 at 2:12 P.M. Unfortunately, however, the order seems to have been passed exparte on the same date.
Heard. The Court has perused the records and considered the matter. In the opinion of this Court, the above chronology of events reveals a clear violation of Principles of Natural Justice. Such fixing of hearings that too on weekends with a few hours being granted to file a reply would be unfair and unjust. In view thereof, the impugned order is set aside and the matter is remanded back to the concerned Adjudicating Authority. The Petitioner is permitted to file a proper reply to the SCN by 15th July, 2025. Thereafter, a personal hearing shall be afforded by the Adjudicating Authority to the Petitioner at the following e-mail address and mobile No.: E-mail: vikramjeet.singh@ethoswatches.com This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 20:42:59
Mobile No.: 9988689609
The Adjudicating Authority, upon duly considering the reply filed and the submissions made by the Petitioner, shall pass its order in accordance with law.
All the rights and contentions are left open.
Accordingly, the present writ petition is disposed of in above terms. All the pending applications, if any, are also disposed of. PRATHIBA M. SINGH, J. RAJNEESH KUMAR GUPTA, J. MAY 23, 2025/MR/Ar. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 20:42:59
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.