The Calcutta High Court has set aside a GST adjudication order after noting that it had been uploaded only under the “Additional Notice and Orders” tab on the GST portal without separate intimation to the taxpayer.
The bench of Justice Smita Das De directed the department to reconsider the taxpayer’s reply on merits, grant an opportunity of hearing and issue a fresh reasoned order.
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The petition challenged an adjudication order passed under Section 74 of the West Bengal Goods and Services Tax Act and the Central Goods and Services Tax Act, 2017.
The dispute arose from a show cause notice issued in Form DRC-01 on March 6, 2025, demanding tax, interest and penalty. According to the petitioners, both the notice and the subsequent adjudication order were uploaded under the “Additional Notice and Orders” tab on the GST portal.
The petitioners contended that the show cause notice fixed the personal hearing on the same date as the deadline for submitting a reply. They argued that this arrangement violated the principles of natural justice.
The taxpayer submitted its reply on April 7, 2025. However, according to the petitioners, the authorities did not provide an opportunity of personal hearing after the reply was filed. They submitted that this was contrary to the statutory requirements under Section 75(4) of the GST legislation.
The petitioners described the subsequent adjudication order as an ex parte order and asserted that they became aware of it only after receiving Form DRC-13 from their bankers, dated March 5, 2026. They challenged the proceedings on the grounds of procedural non-compliance, breach of natural justice and non-application of mind. Sheela Foam Limited & Anr.
The State submitted that the petitioners had been granted ample opportunities to defend their case.
The Court considered the rival submissions and the records placed before it. It found that the petitioners had established a prima facie case and specifically noted that the adjudication order had been uploaded only under the “Additional Notice and Orders” tab, with no separate intimation being given. Sheela Foam Limited & Anr.
The High Court quashed and set aside the adjudication order dated August 4, 2025.
The Deputy Commissioner, State Tax, Shibpur Charge, was directed to revisit the issue by considering the taxpayer’s reply on its merits. The Court also expressly required the authority to afford the taxpayer an opportunity of hearing before passing a fresh reasoned adjudication order in accordance with law.
The fresh order must be passed within 12 weeks from the date of the High Court’s order. The decision must then be communicated to the petitioners within one week thereafter.
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