GST Portal SCN Glitch: Delhi HC Sets Aside ₹3.16 Crore Demand, Allows PSU to File Reply and Attend Personal Hearing [Read Order]

The High Court of Delhi, set aside a ₹3.16 crore GST demand against a Public Sector Undertaking ( PSU ), allowing it to file a reply and attend a personal hearing after noting that the Show Cause Notice (SCN) was uploaded only in the ‘Additional Notices Tab’ of the portal and went unnoticed due to a portal update.

National Aluminium Company Limited,petitioner-assessee,filed a petition under Articles 226 and 227 of the Constitution of India challenging the order dated 18th March, 2024, by the Sales Tax Officer for FY 2018-19, which raised a demand of Rs. 3.16 crore.

The petitioner argued that the SCN dated 5th December, 2023 was uploaded only in the ‘Additional Notices Tab’ and went unnoticed. A reminder issued on 17th January, 2024 also did not reach the petitioner, as the GST portal was updated with the new tab just a day earlier, on 16th January, 2024.

The petitioner counsel argued that the petitioner had no chance to file a reply or appear before the Adjudicating Authority and requested that the case be sent back. The respondent counsel opposed, stating that no notifications were challenged and added that a reminder was issued after the GST portal was updated on 16th January, 2024.

Justice Prathiba M Singh and Justice Shail Jain noted that the petition had certain unique features, including that the petitioner was a PSU under the Ministry of Mines and that the SCN was issued before the portal change on 16th January, 2024, while the reminder was issued just a day after, on 17th January, 2024.

The Court observed that the petitioner might have missed the reminder, which explained why no reply or personal hearing took place.

The bench referred to earlier judgments where similar issues had arisen due to notices being uploaded under the ‘Additional Notices Tab’ and had been remanded to ensure fair opportunity of hearing. Relying on those precedents, the Court set aside the impugned order and remanded the matter back to the Adjudicating Authority.

The petitioner was granted time till 31st October, 2025 to file a reply to the SCN. The Adjudicating Authority was directed to issue a personal hearing notice, to be communicated by email and mobile, and to pass a fresh order after considering the reply and submissions.

The Court clarified that the order would not act as a precedent in other cases, kept all rights and remedies open, and directed that access to the GST portal be provided to the petitioner within one week. The writ petition and pending applications were disposed of accordingly.

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