Himanshu Aggarwal Proprietor - Hmv Mobile Phone Accessories Company vs. Sales Tax Officer Class Ii / Avato Ward 44 Zone 03 Delhi & Anr.

Facts

The petitioner, Himanshu Aggarwal, proprietor of HMV Mobile Phone Accessories Company, challenged an order dated 02.03.2024 passed under Section 73 of the CGST Act, which stemmed from a Show Cause Notice (SCN) dated 02.12.2023. The petitioner contended that the impugned SCN was uploaded on the GST portal under the category 'View Additional Notices & Orders', making it not easily accessible, whereas it should have been placed under the heading 'View Notices & Orders'. The petitioner argued that this placement constituted improper service of the notice.

Held

The Court held that uploading a notice under the heading 'Additional Notices' is not sufficient service in terms of Section 169 of the CGST Act. The Court referred to its earlier decision in M/s ACE Cardiopathy Solutions Private Ltd. v. Union of India & Ors., which in turn relied on a Madras High Court judgment. The reasoning was that the GST portal had separate headings for 'View Notices and Orders' and 'View Additional Notices and Orders', with the latter being less accessible. The Court noted that the GST authorities had since redesigned the portal to place these tabs adjacent to each other under a single heading. As the impugned SCN was issued before this redesign, the Court found the service to be deficient. Consequently, the impugned order was set aside, and the matter was remanded to the concerned authority for fresh adjudication after the petitioner files a response to the SCN within two weeks and is afforded an opportunity to be heard.

Key Issues

1. Whether the uploading of a show cause notice under the heading 'View Additional Notices & Orders' on the GST portal constitutes sufficient service in terms of Section 169 of the Central Goods and Services Tax Act, 2017, thereby satisfying the requirement of proper intimation to the taxpayer? The petitioner argued that the placement of the SCN under 'View Additional Notices & Orders' was not easily accessible and that it should have been under the primary 'View Notices & Orders' tab. The petitioner relied on the principle that proper service is crucial for due process. The respondent revenue authority contended that uploading the notice on the portal is sufficient compliance with Section 169 of the CGST Act. The respondent's argument was that the mere act of uploading on the portal, irrespective of the specific tab, fulfilled the statutory requirement.