Delhi HC Sets Aside Ex-Parte GST Demand Over Improper SCN Service via Portal’s ‘Additional Notice’ Tab [Read Order]

Delhi HC Relief for Taxpayers: Improper GST Notice Leads to Demand Being Overturned

The Delhi High Court has provided significant relief to taxpayers, setting aside a GST demand order due to irregularities in the way the notice was served. The court emphasized the importance of proper communication of Show Cause Notices (SCNs) to ensure fairness and compliance with legal procedures.

Improper Notice Delivery: The Core Issue

The core issue revolved around the manner in which the GST department served the SCN. The notice was reportedly uploaded only under the ‘Additional Notices & Orders’ tab on the GST portal. The High Court observed that this method might not be sufficient to ensure that the taxpayer is actually aware of the notice, potentially leading to missed deadlines and unwarranted penalties.

Referring to the Neelgiri Machinery Case

The court referred to its earlier decision in Neelgiri Machinery v. Commissioner, Delhi GST, highlighting a consistent stance on the crucial need for clear and effective communication channels for GST-related notices. The court reiterated that simply uploading a notice to the ‘Additional Notices & Orders’ section isn’t enough. A more proactive approach is required.

Ensuring Clear Communication: Email and Other Channels

The High Court’s ruling underlines the necessity for the GST department to utilize multiple communication channels, including email and possibly SMS, to ensure that taxpayers are promptly informed about important notices and deadlines. Merely placing a document in the ‘Additional Notices & Orders’ tab is not considered adequate service.

This ruling is expected to have a significant impact on GST practices, prompting a review of notice delivery procedures and potentially leading to greater emphasis on direct communication with taxpayers. It underscores the importance of due process and fairness in tax administration.

• The Delhi High Court set aside a GST demand due to improper notice delivery.
• The notice was only uploaded to the ‘Additional Notices & Orders’ tab of the GST portal.
• The court stressed the need for clear communication through channels like email.