Uploading SCN under 'Additional Notices' Insufficient: Delhi HC sets aside Order u/s 73 of GST Act [Read Order]

The Delhi High Court has set aside an order issued under Section 73 of the Goods and Services Tax ( GST ) Act, 2017, citing improper service of the show cause notice ( SCN ) that was uploaded under 'Additional Notices and Orders' instead of 'Notices and Orders'.

The petitioner, Neeraj Kumar, sole proprietor of ABM Pneumatics & Hydraulic Sales, challenged an order dated 30.12.2023, issued under Section 73 of the GST Act. The petitioner also contested Notification No. 9/2023-Central Tax dated March 31, 2023, which extended the time limit specified under Section 73(10) of the GST Act for passing an order under Section 73(9) of the GST Act, for the year 2017-18, up to 31.12.2023. The petitioner argued that the SCN issued was barred by limitation due to improper service.

Wahaj Ahmad Khan, counsel for the petitioner, contended that the impugned SCN was uploaded on the portal in the category of 'Additional Notices and Orders' which were not easily accessible. He argued that the show cause notices were required to be placed under the heading of 'Notices and Orders' but this was not done. He emphasised that this misplacement violated the service requirements under Section 169 of the GST Act.

The bench of Justices Vibhu Bakhru and Sachin Datta referred to its prior decision in ACE Cardiopathy Solutions (P.) Ltd. v. Union of India, where it had rejected the contention that uploading of a notice under the heading 'Additional Notices' would be sufficient service in terms of Section 169 of the GST Act.

The bench also referenced a judgement by the Madras High Court in M/s East Coast Constructions and Industries Ltd. vs. Assistant Commissioner (ST), which highlighted the issue of placing communications under separate headings of 'View Notices and Orders' and 'View Additional Notices and Orders'.

The court noted that the GST Authorities had since addressed the issue and redesigned the portal to ensure that the 'View Notices' tab and 'View Additional Notices' tab were placed under one heading. However, it was not disputed that the impugned SCN was issued before the GST portal was redesigned.

The court allowed the present petition and set aside the impugned order. The matter was remanded to the adjudicating authority for fresh consideration. The petitioner was granted the liberty to file a response to the impugned SCN within two weeks from the date of the judgement. The concerned authority was directed to adjudicate the impugned SCN after considering the petitioner's response and after affording the petitioner an opportunity to be heard.

To Read the full text of the Order CLICK HERE

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