No Proper Uploading of SCN in GST portal: Delhi HC quashes Demand of Rs 22 lakhs [Read Order]

The Delhi High Court quashed a demand of Rupees 22 lakhs in the absence of proper uploading of the show cause notice (SCN) in the GST portal.

The Petitioner impugned the order whereby the impugned Show Cause Notice, proposing a demand of Rs.22,83,154.00 against the petitioner has been disposed of and a demand including penalty had been created against the Petitioner. The order has been passed under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act).

The counsel for the Petitioner submitted that Petitioner was unaware of the initiation of any such proceedings and accordingly could not respond to the same and that the said Show Cause Notice was uploaded on the portal in the category of Additional Notices and was not communicated to the petitioner through any other mode of communication. It was further submitted that since it was merely uploaded on the web portal under the tab of “Additional Notices and Orders”, and accordingly, petitioner was unaware of any such proceedings initiated against it.

Reference was made to the judgment of the High Court of Madras titled M/s East Coast Constructions and Industries Ltd. vs. Assistant Commissioner (ST) dated 11.09.2023, wherein the High Court of Madras has noticed that communications are placed under the heading of “View Notices and Orders” and “View Additional Notices and Orders”. The Madras High Court had directed the respondents to address the issue arising out of posting of information under two separate headings. As per the petitioner, the Menu “View Additional Notices and Orders” were under the heading of “User Services” and not under the heading “View Notices and Orders”.

The counsel also relied on yet another judgment of Madras High Court titled Murugesan Jayalakshmi Vs. State Tax Officer, wherein the Madras High Court has noticed that the said issue has been addressed and the portal has been re-designed and both the “View Notices” tab and “View Additional Notices” tab are under one heading.

A Division bench of Justices Sanjeev Sachdeva and Ravinder Dudeja observed that “Clearly, petitioner has made out a case that Petitioner has missed out the receipt of the notice as it was merely uploaded on the portal under the category of “Additional Notices” tab and accordingly could not respond to the Show Cause Notice. In view of the above, impugned order 14.03.2024 is set aside. Since the only reason for passing the impugned order is that Petitioner had not filed any reply/explanation, Petitioner needs to be granted one opportunity to respond to the Show Cause Notice and thereafter, the Show Cause Notice to be re-adjudicated.”

To Read the full text of the Order CLICK HERE

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