In a significant ruling, the Delhi High Court has emphasized that Goods and Services Tax (GST) authorities must approach requests for adjournment of personal hearings on medical grounds with empathy. The Court highlighted that adverse orders should not be passed without properly considering such genuine requests.
The bench comprising Justices Prathiba M. Singh and Rajneesh Kumar Gupta passed this observation while hearing a writ petition filed by M/s Jai Opticals (Case No.: W.P.(C) 5300/2025). The petitioner challenged a GST demand order of approximately Rs. 1.5 crores issued by the Delhi GST Department, despite having sought an adjournment of the hearing on medical grounds. The proprietor of the firm had reportedly suffered a brain stroke, which was substantiated with medical records.
Background of the Case
The matter involved a series of three show cause notices (SCNs) issued to the petitioner:
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First SCN: Issued in September 2023, leading to a demand order. This was challenged, and a Coordinate Bench of the Delhi High Court ordered a re-adjudication.
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Second SCN: Issued in May 2024. The petitioner filed a reply, and the Department subsequently dropped the demand.
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Third SCN: Issued thereafter, for which a hearing notice was sent. The petitioner again sought an adjournment due to the proprietor’s medical condition, but the Department passed an impugned order dated January 8, 2025.
The GST Department argued that the second and third SCNs were part of a continuing proceeding related to the first notice. It claimed the second SCN was mistakenly uploaded under the wrong tab, leading to the issuance of the third notice.
However, the Court observed that the petitioner had been diligent throughout, filing timely replies and staying engaged with the Department. It noted that when a genuine request is made for adjournment based on medical reasons—and is supported by hospital records—the Department must handle the matter with compassion.
High Court’s Judgment
The Delhi High Court set aside the impugned order dated January 8, 2025. It directed the GST Department to grant the petitioner a fair hearing and reiterated the importance of empathetically handling adjournment requests in such circumstances.
Key Takeaways:
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Empathy in Governance: Authorities are expected to act with compassion when medical grounds are cited.
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Fair Hearing Is Crucial: Even in tax proceedings, due process and the right to be heard must be upheld.
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Court’s Intervention: The judiciary continues to play a vital role in ensuring administrative fairness.
This ruling sets a precedent for future GST matters where personal hearings are sought to be deferred on genuine health-related grounds. It reinforces the principle that procedural fairness and human sensitivity must go hand in hand in tax administration.