Delhi HC: Uploading of SCN by GST Dept Under the Additional Notices Tab on Portal is Improper

Uploading a show cause notice via the GST department is improper under the additional notices tab on its portal, as the taxpayer may miss the same, the Delhi High Court mentioned.

The decision holding that uploading of notices under the heading ‘additional notices’ amounts to sufficient service comes towards a coordinate bench decision rendered in July last year.

A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta ruled that, “the notice, if uploaded on the additional notices tab of the portal, the same would not be proper in as much as the party would not have even acquired knowledge of the same.” It set aside the taxpayers’ appeal against the final order passed by the Department as per the Show Cause Notice (SCN) uploaded on the additional notices.

As the SCN was uploaded under an additional tabs section, and thus the applicant is unaware of it, and therefore, no reply was filed. Without hearing the applicant, the impugned order has passed and without any chance to submit a reply.

Appellate Authority under Section 107 of the Central Goods and Services Tax Act, 2017, has been approached by the applicant, which dismissed the appeal on the limitation grounds.

The delay was condoned by the HC and based on merits, asked the Appellate Authority to adjudicate the appeal. The Allahabad High Court, the taxpayer will be provided a chance for a fresh notice if the initial notice is skipped, as of being uploaded under the ‘additional notices’ tab by the GST Department.

A case came before Kerala High Court where the knowledge of SCN came to know much later, since the same was uploaded in the tab for ‘Additional Notices and Orders’ and not that provided for ‘Notices and Orders’ in the portal.

HC, because of the GST department, the absence of knowledge is there in the same case, it shall amount to a denial of the principles of natural justice.