Facts of the Case

The Petitioner, Satish Chand Mittal (trading as National Rubber Products), challenged an adjudication order dated 30.12.2023 passed under Section 73 of the CGST/SGST Act for the tax period July 2017 to March 2018.

The order was passed pursuant to a Show Cause Notice dated 29.09.2023 and a subsequent reminder dated 23.11.2023.

The Petitioner contended that:

  • The Show Cause Notice (SCN) was never received.
  • Consequently, no reply could be filed.
  • The Petitioner could not attend the scheduled personal hearings.
  • The SCN, reminder, and the impugned order were unsigned. 

Issues Involved

  1. Whether an adjudication order passed without proper service of SCN violates principles of natural justice.
  2. Whether uploading notices under a non-prominent tab on the GST portal constitutes valid service.
  3. Whether unsigned SCN and orders are legally sustainable.

Petitioner’s Arguments

  • The SCN was not served, thereby denying the Petitioner an opportunity to respond.
  • No knowledge of proceedings resulted in absence from personal hearings.
  • The documents (SCN, reminder, order) were unsigned, rendering them invalid.
  • The order is liable to be set aside for violation of natural justice principles.

Respondent’s Arguments

  • The Respondent fairly conceded that the issue is covered by prior decisions of the Delhi High Court:
    • M/s ACE Cardiopathy Solutions Private Ltd. v. Union of India & Ors.
    • Kamla Vohra v. Sales Tax Officer Class II/AVATO Ward 52
  • It was submitted that:
    • Notices were uploaded on the GST portal under the tab “Additional Notices & Orders”.
    • Due to portal interface issues, the Petitioner might not have accessed them.
    • The portal issue has now been rectified by repositioning the tab for better visibility. 

Court’s Findings

  • The Court accepted that the issue is squarely covered by earlier judgments.
  • It acknowledged that improper visibility of notices on the GST portal may result in lack of effective service.
  • The failure to provide a fair opportunity to respond amounts to violation of natural justice.

Court Order / Decision

  • The impugned adjudication order dated 30.12.2023 was set aside.
  • The Petitioner was granted:
    • Two weeks’ time to file a reply to the SCN.
  • The Adjudicating Authority was directed to:
    • Reconsider the matter afresh,
    • Provide an opportunity of hearing, and
    • Pass a reasoned order in accordance with law. 

Important Clarifications

  • Uploading notices on a less visible section of the GST portal does not constitute effective service.
  • Proper communication of SCN is essential before passing adverse orders.
  • Authorities must ensure accessibility and visibility of notices to taxpayers.
  • Unsigned notices and orders raise serious questions on procedural validity.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/VIB09092024CW125892024_174033.pdf 

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