Enviro Tech Ventures Limited vs. Union Of INDIA & Ors.

Facts

The Petitioner, Enviro Tech Ventures Limited, filed a writ petition challenging an order dated August 21, 2024, passed by the Sales Tax Officer Class II/Avato Ward 2, Zone-2, Delhi, for the Financial Year 2019-20. The petition also challenged the vires of several notifications, including Notification No. 09/2023 (State Tax and Central Tax) and Notification No. 56/2023 (Central Tax and State Tax). The Petitioner contended that the impugned order was passed ex-parte without considering their reply to the Show Cause Notice dated May 30, 2024. The Petitioner argued that the adjudicating authority failed to provide reasons for its decision despite a detailed reply being filed. The Revenue suggested that the matter should be relegated to the appellate remedy.

Held

The Court acknowledged that the challenge to the impugned notifications was pending before the Supreme Court in S.L.P. No. 4240/2025. While the validity of these notifications was under consideration by the Supreme Court, the High Court was of the prima facie view that orders could be passed affording an opportunity to petitioners to place their stand before the adjudicating authority or to pursue appellate remedies. In this specific case, the Petitioner had filed a reply to the Show Cause Notice. However, since the Petitioner had not sought adjournment and had not attended the hearing, the Court was of the view that the Petitioner ought to challenge the impugned order by way of an appeal. The Court directed the Petitioner to file an appeal by November 30, 2025, with requisite pre-deposit, and stated that if filed within this period, it would not be dismissed on grounds of limitation but adjudicated on merits. Access to the GST portal was to be provided for downloading documents. Any further adjudication by either authority would be subject to the Supreme Court's decision in S.L.P. No. 4240/2025 and the High Court's decision in W.P.(C) 9214/2024. The Court expressly left open all rights and remedies of the parties.

Key Issues

1. Whether the impugned notifications, specifically Notification No. 09/2023 and Notification No. 56/2023 (both Central and State Tax), are ultra vires the provisions of the Central Goods and Services Tax Act, 2017, particularly Section 168A, due to procedural irregularities in their issuance, including the alleged lack of prior recommendation from the GST Council or subsequent ratification? (Petitioner's contention: The notifications were issued contrary to the mandate under Section 168A, with extensions granted without proper recommendation or subsequent ratification. Revenue's contention: Not explicitly recorded, but impliedly supported the validity of the notifications by suggesting relegation to appellate remedies). 2. Whether the impugned order dated August 21, 2024, passed by the Sales Tax Officer is liable to be quashed or set aside for having been passed ex-parte without considering the Petitioner's reply to the Show Cause Notice dated May 30, 2024, and without providing adequate reasons for the decision? (Petitioner's contention: The order is bad in law as it was passed without considering the Petitioner's detailed reply and lacks reasons. Revenue's contention: The Petitioner should avail the statutory appellate remedy).