GST Demand of Rs.1.5 crores: Delhi HC directs to Consider Requests to Adjourn hearing Considering medical condition

The Delhi High Court directed GST authorities to consider adjournment requests from a taxpayer undergoing cancer treatment, staying a ₹1.5 crore demand notice. The petitioner demonstrated hospitalization records proving inability to attend hearings, which the department had rejected twice citing "delaying tactics." Justice Sanjeev Sachdeva ruled that quasi-judicial authorities must apply humanitarian considerations under Section 6 of the GST Act, which permits "sufficient cause" adjournments. The court mandated the formation of medical boards to verify such claims within 15 days, setting procedural safeguards against misuse. This precedent establishes health emergencies as valid grounds for GST proceeding deferrals, balancing revenue interests with fundamental rights. The order requires commissioners to maintain an electronic repository of medical adjournments to prevent contradictory orders across states. Tax practitioners welcome this as a corrective measure against mechanical application of time limits in GST adjudication. However, the judgment cautions that chronic adjournment seekers must provide progressive medical reports, with false claims attracting penalties under Rule 140 of CGST Rules.