Assessee‘s Failure to Check GST Portal resulted in Non-Response to SCN: Delhi HC Allows to file Appeal [Read Order]

The Delhi High Court ruled that the department cannot be faulted for the act of the petitioner neglecting to check the portal and not replying to the show-cause notice.

The petitioner, Sandeep Garg, who owns M/s Aares Spring Industries, is contesting the department's decision on the grounds that it was made without consulting the petitioner and that the petitioner was not even served with the Show Cause Notice.

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The petitioner is a sole proprietorship with its main office located in this location. The petitioner trades and manufactures various products, including nut bolts and plastic components. According to the Petitioner, the Respondent sent the Show Cause Notice under the "additional notices and orders" tab rather than the "notices and orders" tab, which makes it an improper manner of service.

The petitioner said that the reply could not be filed because the petitioner's accountant was not using the site since it was down at the time.

The division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the Petitioner has not filed a response to the Show Cause Notice because they have not been vigilant in monitoring the site. Therefore, the department cannot be held accountable. However, in accordance with Section 107 of the Central Goods and Service Tax Act, 2017, the Petitioner may appeal the contested ruling to the Appellate Authority and include a pre-deposit on the tax amount.

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It was viewed that since the Petitioner has not been diligent in checking the portal, no reply to the Show Cause Notice has been filed by the Petitioner. Thus the department cannot be blamed.

While disposing the appeal, the court held that the Petitioner is permitted to file an appeal against the impugned order before the Appellate Authority under Section 107 of the Central Goods and Service Tax Act, 2017 along with the pre-deposit on the tax amount in terms of the said provision.

“If the said appeal is filed within the 30 days, it shall be adjudicated on the merits and not be dismissed on the ground of limitation.”, the bench held.

To Read the full text of the Order CLICK HERE

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