Delhi High Court Rules: GST Notices on ‘Additional Notices’ Tab Are Invalid

Delhi High Court Says ‘Additional Notices’ Tab on GST Portal is Problematic

The Delhi High Court has issued a ruling that could impact how businesses receive important notices from the Goods and Services Tax (GST) department. The court stated that uploading show cause notices (SCNs) under the ‘additional notices’ tab on the GST portal is not a proper way to serve them. The reason? Businesses might simply miss them.

This decision goes against a previous ruling by another division of the court from last year, which had said that uploading notices under ‘additional notices’ was sufficient service. The current ruling emphasizes that the GST department needs to ensure businesses actually see these notices, otherwise, it’s not fair.

How Did This Case Come About?

A company called M/S Gmt Garments went to court because they claimed they never saw a show cause notice (SCN) issued by the GST department. The notice had been uploaded under the ‘additional notices’ tab, and the company argued they weren’t aware of it. As a result, they couldn’t respond, and a final order was passed against them.

The company appealed this decision, arguing they should have been given a chance to respond to the SCN. The Delhi High Court agreed, stating that the ‘additional notices’ tab is not a reliable method for serving important notices. They overturned the initial order and sent the case back to the Appellate Authority for a fresh hearing.

Not an Isolated Case

This isn’t the first time courts have raised concerns about the ‘additional notices’ tab. The Allahabad High Court and the Kerala High Court have also ruled that using this tab can be problematic, stating that it could violate the principles of natural justice if businesses don’t receive proper notice.