Failure to Respond on SCN due to Missing Receipt of Notice from GST Portal: Delhi HC directs Re Adjudication [Read Order]

The Delhi High Court directed re-adjudication as the failure to respond to Show Cause Notice ( SCN ) was due to a missing of receipt of notice from the Goods and Service Tax ( GST ) portal.

Anhad Impex, the Petitioner challenged the order passed under Section 73 of the Central Goods and Services Tax Act, 2017, whereby a demand has been created against the Petitioner. 

Counsel for the petitioner submitted that the petitioner never received the Show Cause Notice and accordingly could not respond to the same.  It was contended that the Show Cause Notices are normally uploaded on the portal under the heading of “Notices”,  however, in the instant case it appears that the Show Cause Notice was uploaded on the portal in the category of “Additional Notices” which were not easily accessible, and accordingly skipped the attention of the petitioner. 

Counsel for the respondent submitted that in terms of Section 169 of the Central Goods and Services Tax Act, 2017, uploading a notice on the portal is sufficient compliance with regard to intimation to the taxpayer.  

 The petitioner has missed out on the receipt of the notice and accordingly could not respond to the Show Cause Notice. Perusal of the impugned order it was evident that the impugned order categorically records that the taxpayer has not replied or appeared in person.  Consequently, the division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja viewed that the petitioner needs to be granted one opportunity to respond to the Show Cause Notice and thereafter, the Show Cause Notice to be re-adjudicated.

The Court set aside the impugned order and directed the respondent to open the portal to enable the petitioner to file a response to the said Show Cause Notice which shall be filed within 30 days. Thereafter, the Proper Officer of the respondent shall adjudicate the Show Cause Notice within four weeks thereof. The petitioner shall also be given an opportunity for a personal hearing. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates