High Court: GST SCN Must Be Communicated, Not Just Uploaded

The assessee, a sole proprietorship engaged in toy trading and registered under GST, challenged a demand order dated 26.03.2024 that raised a liability of Rs. 18.47 lakh for FY 2018-19. The proceedings were initiated through a Show Cause Notice (SCN) issued under Section 73 of the CGST Act. The petitioner claimed that the SCN was never properly served and had been uploaded only in the “Additional Notices” tab of the GST portal, without any corresponding email or SMS communication.

Due to a lack of knowledge of the SCN and a medical emergency faced by the petitioner’s accountant, no reply was filed, and an ex-parte order was passed. The petitioner also challenged the constitutional validity of GST Notifications extending the limitation, which are currently pending adjudication before the Supreme Court.

Issue Raised: Whether the GST demand order is valid despite improper SCN service, and if proceedings should await the Supreme Court’s decision on limitation notifications.

High Court’s Decision: The High Court set aside the demand order and remanded the case, holding that uploading the SCN only in the “Additional Notices” tab without proper communication violated natural justice. Citing earlier rulings, it stressed the importance of a fair hearing.

The petitioner was given time until July 25, 2025, to file a reply. A de novo hearing notice must be issued via the GST portal, email, and mobile. The Court clarified that the validity of the limitation extension notifications remains open and any new order will be subject to the Supreme Court’s decision. Portal access for filing and receiving notices must also be ensured.

To Read Full Judgment, Download PDF Given Below