Intro:
No provision under GST permits adjudicating authorities to reserve judgment and deliver it later. This legal gap has triggered taxpayer litigation and judicial scrutiny. Recent High Court rulings reaffirm that GST law mandates speaking orders at the time of the hearing, ensuring transparency and fairness.
GST Law Is Clear: No Power to Reserve Orders
Under the Central Goods and Services Tax (CGST) Act, 2017, authorities are required to pass orders “at the conclusion of the hearing”. The law does not grant any power to reserve judgments and pronounce them after days or weeks — unlike in traditional civil or criminal courts.
Key Legal Provisions
| Section | Description |
|---|---|
| Section 75(4) | Requires that an opportunity of hearing be granted if requested by the person |
| Section 75(5) | Clearly states that “the proper officer shall, if sufficient cause is shown, grant time and adjourn the hearing from time to time… however, no adjournment shall be granted more than three times to a person during the proceedings.” |
| Section 75(6) | Specifies that the order must be passed within three years from the due date, but is silent on reserving or delaying judgment once the hearing is over |
What Does This Mean?
- Officers must issue a speaking order at the end of the final hearing
- There is no procedural framework in CGST law to delay or reserve the decision
- Such practices are legally unsustainable, as reiterated in court judgments
Court Rulings on GST Judgment Delays
Several High Courts have pulled up GST officers for reserving orders without statutory backing. Let’s look at two recent examples:
Jharkhand High Court – Tvl. Sree Meenakshi Enterprises Case
- The authority concluded the hearing but issued the order after 1.5 months
- The Court held this as violative of natural justice and GST law, since the delay was unexplained
- Judgment: Jharkhand HC Judgment (Link to official HC site)
Madras High Court – M/s Kothari Sugars Ltd. Case
- Observed that adjudication without timelines opens doors to misuse
- Reinforced that GST adjudication must follow strict procedural discipline
Why This Matters for Taxpayers
If you’re involved in a GST adjudication:
- Insist on the order being issued immediately after the hearing
- If the officer reserves the decision, record your objection in writing
- Use the delay as a ground for writ petition under Article 226 (violation of natural justice)
Expert View: Practical Taxpayer Tip
“Whenever you attend a GST hearing, always ask for a copy of the proceedings and check if the order is pronounced on the same day. If not, submit a letter the same day requesting immediate order issuance under Section 75(6),”
— Senior GST Consultant, Chennai
Comparison Table: GST vs Income Tax – Power to Reserve Orders
| Aspect | GST Law | Income Tax Act |
|---|---|---|
| Can Authority Reserve Judgment? | ❌ No | ✅ Yes (Tribunal & Courts) |
| Express Provision for Delay? | ❌ Absent | ✅ Present in ITAT & Courts |
| Legal Backing | CGST Act is silent | IT Act has well-defined procedure |
| Court View on Delay | Against Law | Permitted with reason |
FAQs
Q1. Can GST officer issue the order a few days after the hearing?
No. There is no provision in GST law to do so. Orders must be passed at the conclusion of the hearing.
Q2. What if an officer issues the order after a month?
You can challenge it in High Court for breach of natural justice and procedural violation.
Q3. Is there any time limit to issue an adjudication order?
Yes, under Section 75(6), the order must be issued within 3 years, but not later than the date of hearing as per procedural requirement.
Summary
No provision under GST permits reserving orders post-hearing. Officers must issue orders immediately after the hearing. Delays can be challenged under Article 226.
Conclusion: Uphold Your Rights as a Taxpayer
There is no legal provision under GST to reserve and deliver orders later. Such practices are not only procedurally flawed but also legally challengeable. If you’re facing delayed GST orders, know your rights and consider legal redress.