Facts of the Case

The petitioner, Bablu Rana (proprietor of M/s Tara Trading Co.), challenged:

  • The Order dated 18.12.2023 passed under Section 73 CGST Act.
  • The Show Cause Notice (SCN) dated 22.09.2023.
  • Notification No. 9/2023-Central Tax dated 31.03.2023, which extended the limitation period for adjudication for FY 2017–18.

The petitioner contended that:

  • The SCN was uploaded under the category “Additional Notices and Orders” on the GST portal, making it not reasonably accessible.
  • The SCN was barred by limitation. 

Issues Involved

  1. Whether uploading an SCN under “Additional Notices and Orders” constitutes valid service under Section 169 of the CGST Act.
  2. Whether the impugned proceedings were vitiated due to improper service of notice.
  3. Whether the petitioner was denied a fair opportunity to respond.

Petitioner’s Arguments

  • The SCN was not properly served as it was placed under an inaccessible category on the GST portal.
  • Proper service requires placement under “Notices and Orders”, not “Additional Notices”.
  • The notice was effectively not communicated, violating principles of natural justice.
  • The SCN was also time-barred. 

Respondent’s Arguments

  • Uploading the SCN on the GST portal constitutes valid service under Section 169 CGST Act.
  • The petitioner was deemed to have notice once the document was uploaded electronically. 

Court Findings / Order

The Delhi High Court held:

  • Mere uploading of notice under “Additional Notices and Orders” does not constitute proper service under Section 169 CGST Act.
  • Reliance was placed on earlier decision:
    • ACE Cardiopathy Solutions (P.) Ltd. v. Union of India (2024:DHC:4108-DB)
  • The Court observed:
    • GST portal earlier had segregated tabs, causing confusion.
    • The SCN was issued before portal redesign, hence accessibility issue was valid.

Final Order

  • The impugned order dated 18.12.2023 was set aside.
  • The matter was remanded back for fresh adjudication.
  • Petitioner allowed to file reply within two weeks.
  • Authority directed to pass order after granting opportunity of hearing. 

Important Clarifications by Court

  • Proper service under GST law requires effective communication, not mere technical uploading.
  • Portal design and accessibility impact validity of service.
  • Tax authorities must ensure clear and visible placement of notices.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/VIB11072024CW93942024_131203.pdf  

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