Case Details: Srideva Sattva (P.) Ltd. vs. State of Haryana [2026] 184 taxmann.com 595 (SC)
Judiciary and Counsel Details
- Aravind Kumar & Prasanna B. Varale, JJ.
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Amit Deshpande, Suresh V., Ms Urvashi Tyagi, Advs. & Ms Preeti Gupta, AOR for the Petitioner.
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Alok Sangwan, Sr. AAG, Samar Vijay Singh & Harsh Mehta, Advs. for the Respondent.
Facts of the Case
The appellant was registered under GST and had entered into a logistic support agreement for warehouse operations and business management. Upon expiry of the arrangement, it shifted its entire business unit and warehouse operations from Haryana to Delhi. A show cause notice (SCN) was issued proposing reversal of ITC and demand of tax, pursuant to which an order-in-original was passed ex parte confirming the demand. It filed a writ petition challenging the notice and order; however, the same was dismissed on the ground that an alternate remedy was available. The present appeal contending that the SCN was not served after the change of business premises and that the order-in-original was passed without affording an opportunity of hearing, thereby rendering the proceedings without jurisdiction. The matter was accordingly placed before the Supreme Court.
Supreme Court Held
The Supreme Court held that although the order-in-original recorded that the SCN had been served, no material was available on record to substantiate such service in terms of Section 169 of the CGST Act and the Haryana GST Act. It was observed that proper service of notice is a mandatory requirement for valid adjudication and forms the basis of compliance with principles of natural justice. The Court held that passing an ex parte order without establishing service of notice vitiates the proceedings. Accordingly, the impugned order was set aside, with liberty granted to the appellant to file a reply to the SCN, and the matter was remanded to the assessing officer for fresh adjudication in accordance with law.
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