Delhi HC Sets Aside Ex-Parte GST Demand Where SCN Was Uploaded Only Under “Additional Notices” Tab

The petitioner, Sight and Sound India Private Limited, challenged an ex-parte GST adjudication order passed for the tax period April 2018 to March 2019, raising a demand of Rs. 977,618. The petitioner contended that the show cause notice and the reminder were uploaded only under the “Additional Notices” tab on the GST portal and never came to its knowledge, resulting in the denial of the opportunity to reply or seek a personal hearing.

Thereafter, the assessment was completed ex parte. The petitioner also challenged Notification No. 09/2023–Central Tax and the corresponding State notification issued under Section 168A of the CGST Act.

Main Issue: Whether an ex-parte GST adjudication order can be sustained when the show cause notice was uploaded only under the “Additional Notices” tab of the GST portal, effectively denying the assessee a reasonable opportunity of hearing.

HC Held: The High Court set aside the impugned adjudication order, holding that the petitioner had been denied a meaningful opportunity to respond. The Court observed that prior to 16.01.2024, notices uploaded under the “Additional Notices” tab frequently went unnoticed by taxpayers and that similar matters had been remanded.

The matter was remanded to the Adjudicating Authority with liberty to the petitioner to file a reply to the show cause notice, subject to payment of Rs. 10,000 to the Sales Tax Bar Association. The Court directed that notice of the personal hearing be communicated through email and mobile alerts and that a fresh reasoned order be passed.

The challenge to the validity of the notifications issued under Section 168A was kept open, with clarification that any fresh order would remain subject to the outcome of proceedings pending before the Supreme Court.

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