Introduction
In a recent ruling with implications for taxpayers grappling with procedural lapses and legal uncertainties, the Delhi High Court has granted a fresh hearing to M/s Jinender Paper Mart, whose GST registration was suspended and subsequently cancelled without, allegedly, affording a fair opportunity to respond. The order also indirectly acknowledges the broader uncertainty surrounding the validity of certain GST notifications, currently under consideration by the Supreme Court.
This case—M/S Jinender Paper Mart v. Sales Tax Officer Class II/AVATO Ward 12, Zone-2, Delhi and Others—throws light on the importance of due process in tax adjudication, especially in the digital era where GST portal access plays a central role in compliance.
Background and Key Issues
The petitioner challenged the order dated 27th August 2024, passed under the CGST Act, on two key grounds:
- Non-service of the Show Cause Notice (SCN) dated 29th May 2024, which formed the basis of cancellation.
- Lack of opportunity for a personal hearing, allegedly due to the prior suspension of GST registration via SCN dated 24th July 2023, which restricted their access to the GST portal.
Further, the petitioner questioned the constitutional validity of Central Tax Notifications No. 9/2023 and 56/2023, which have far-reaching implications for GST compliance and enforcement. These notifications are currently under judicial scrutiny in SLP No. 4240/2025 before the Hon’ble Supreme Court of India.
Observations and Findings
The Court acknowledged that while a personal hearing was scheduled for 23rd August 2024, the petitioner neither attended nor submitted a written response. However, considering the suspension of GST registration and portal inaccessibility, the Court held that there was merit in the petitioner’s claim of being denied a reasonable opportunity to be heard.
In light of procedural fairness and pending constitutional scrutiny of the notifications in question, the High Court found it appropriate to grant a fresh hearing.
Delhi High Court’s Decision
The Court passed the following directions:
- Set aside the impugned cancellation order dated 27th August 2024.
- Directed the Adjudicating Authority to conduct a fresh hearing.
- Allowed the petitioner to file a reply to the SCN by 10th July 2025.
- Ordered that a personal hearing must be granted thereafter.
- Directed that access to the GST portal be restored to enable due compliance.
- Clarified that the outcome of this case will be subject to the final decision of the Supreme Court in the pending SLP and other connected petitions before the Delhi High Court.
The writ petition was disposed of accordingly.
Conclusion
This ruling underscores the judiciary’s continued emphasis on natural justice in tax proceedings, especially in cases where procedural constraints may prevent taxpayers from effectively presenting their case. The Delhi High Court’s decision provides temporary relief to M/s Jinender Paper Mart while the industry awaits clarity on the constitutional validity of key GST notifications.
Until the Supreme Court rules on the matter, similar cases may witness judicial leniency where procedural fairness is found to be compromised.