Delhi High Court Holds Premature Issuance of SCN Violates Natural Justice under CGST Act

Last updated: 07 January 2026

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The Delhi High Court has ruled that issuing a Show Cause Notice (SCN) before the deadline for responding to a pre-SCN inquiry breaches natural justice principles. The court clarified that the commencement of an audit under the CGST Act is when the taxpayer provides the necessary documents. While the audit report in this case was found to be within the statutory timelines, the premature SCN was set aside, and the matter was sent back to the pre-SCN stage, ensuring taxpayers have a full opportunity to be heard.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Varian Medical Systems International India Pvt. Ltd. v. Union of India & Ors. [W.P.(C) 10642/2025 & 13605/2025, order dated October 28, 2025] held that the issuance of a Show Cause Notice (SCN) before the expiry of the reply period for the Pre-SCN violates principles of natural justice, and that audit commencement date under Section 65 of the CGST Act is the date when the taxpayer provides required documents, with audit conclusion and communication of findings within prescribed timelines.

Citation :
W.P.(C) 10642/2025 & 13605/2025, order dated October 28, 2025

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