Facts of the Case

The petitioner, Prakash Freight Movers Limited, challenged an adjudication order dated 12 December 2023 passed by the GST Department. The said order arose from a Show Cause Notice (SCN) dated 26 September 2023.

The core grievance of the petitioner was that the SCN was not properly communicated. Instead of being displayed in the main notice section, it was uploaded under the “Additional Notices and Orders” tab on the GST portal, due to which the petitioner remained unaware and could not respond.

Additionally, the petitioner also challenged certain GST notifications relating to extension of limitation periods under Section 168A of the CGST Act.

Issues Involved

  1. Whether uploading an SCN under the “Additional Notices” tab constitutes valid service.
  2. Whether the adjudication order passed without proper notice violates principles of natural justice.
  3. Whether the validity of Notifications issued under Section 168A impacts the proceedings.

Petitioner’s Arguments

  • The SCN was not visible in the regular notices tab and was uploaded in an obscure section, making it inaccessible.
  • Due to lack of proper service, the petitioner could not file a reply or attend personal hearing.
  • The adjudication order was passed ex parte, violating principles of natural justice.
  • The petitioner also challenged the validity of Notifications issued under Section 168A, arguing procedural irregularities.

Respondent’s Arguments

  • The department contended that the SCN was uploaded on the GST portal and therefore deemed to be served.
  • It was implied that the petitioner had access to the portal and should have checked all tabs. 

Court’s Findings / Order

The Delhi High Court held:

  • Uploading notices in the “Additional Notices and Orders” tab may result in taxpayers missing them due to lack of visibility.
  • There exists a difference in how notices appear on the department side and taxpayer side.
  • Proper opportunity of hearing must be ensured before passing adjudication orders.

Key Directions:

  • The impugned order dated 12 December 2023 was set aside.
  • The petitioner was granted one month to file a reply to the SCN.
  • The department was directed to:
    • Provide proper communication of hearing notices via email and mobile.
    • Pass a fresh adjudication order after hearing the petitioner.
  • The outcome of adjudication shall remain subject to the Supreme Court decision regarding validity of Section 168A notifications.

Important Clarification by the Court

  • Merely uploading notices on the GST portal is not sufficient if they are not reasonably accessible.
  • The Court emphasized natural justice over technical compliance.
  • The decision aligns with earlier rulings where matters were remanded due to improper visibility of notices.
  • The Court also clarified that issues regarding GST notifications are pending before the Supreme Court, and thus relief is limited to procedural fairness.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/68930042025CW55942025_194717.pdf

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