Delhi High Court Sets Aside GST Demand Over “Hidden” SCN within Additional Notices Tab on Portal [Read Order]

The Delhi High Court recently set aside a Goods and Services Tax (GST) demand order, observing that the Show Cause Notice (SCN) in question had been uploaded solely under the "Additional Notices" tab on the GST portal, unbeknownst to the Petitioner entity.

The decision was given by the High Court while adjudicating a Writ Petition and Civil Miscellaneous Application filed by World Art Press against the Commissioner Delhi Goods And Service Tax and Others challenging the impugned SCN dated 25 September, 2023 and allied demand order dated 26 December, 2023.

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Additionally, the petition also challenged the validity of Notification No. 9/2023 - Central Tax dated 31st March, 2023 issued by the Central Board of Indirect Taxes and Customs (CBIC).

World Art Press, represented by Rakesh Kumar, Parveen Gambhir and Akul Mangla contended before the High Court that the impugned SCN, which formed the very basis of the adverse order against their client, had been uploaded in the “Additional Notices Tab” section of the portal, which was not generally noticeable to the taxpayer.

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It was further stated that neither had a reply been filed nor had a personal hearing been granted, resulting in an ex-parte order being passed and that the petitioner remained unaware of the proceedings against them until the final demand was raised.

Manish Rohilla and Pradeep Kumar Yadav appearing for the Respondents contested the claims, submitting that two reminder notices were also issued on 09th November, 2023 and 05th December, 2023.

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A Division Bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta referred to the decision of the same court in Neelgiri Machinery through its Proprietor Mr. Anil Kumar V. Commissioner Delhi Goods And Service Tax And Others (2024). The court, had in similar circumstances observed that the Notices were projected on the GST Portal under the inconspicuous ‘Additional Notices & Orders’ tab.

The Delhi High Court further observed that post 16 January, 2024, the Department had effected changes in the portal to ensure that the SCNs are easily visible to parties. But, since the present case is from 25 September, 2023 - a period prior to the changes effectuated, the Delhi High Court set aside the impugned order while directing a fresh hearing after provision of due opportunity of personal hearing to the Petitioner.

The Court also clarified that the validity of the impugned notification is left open impending the decision of the Supreme Court in S.L.P No 4240/2025 titled ‘M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors’.

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To Read the full text of the Order CLICK HERE

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