GST | Alleging Denial Of Hearing Insufficient If Assessee Itself Wasn't Diligent In Responding To SCN Or Attending Hearing: Delhi High Court

The Delhi High Court recently declined to quash a Goods and Services Tax (GST) demand order, asserting that allegations of denied hearing are insufficient if the assessee failed to diligently respond to the Show Cause Notice (SCN) or attend scheduled hearings. The division bench observed that the GST Department had provided due process, issuing SCNs and multiple personal hearing notices. However, the petitioner demonstrated a lack of diligence, attempting to join a hearing only on the last date merely to seek an extension, and failing to file a formal reply to the SCN. The Court stressed that the department cannot be held accountable for failing to provide a proper hearing if the assessee makes no substantial effort to submit replies or documents. While upholding the demand order, the court granted the petitioner the liberty to file a statutory appeal under Section 107 of the CGST Act, thereby allowing pursuit of the prescribed appellate remedy. This judgment reinforces the imperative of proactive compliance and participation by assessees in tax proceedings.