Pankaj Aggarwal vs. Sales Tax Officer Class Ii Avato & Ors.
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The petitioner, Pankaj Aggarwal, challenged a Show Cause Notice (SCN) dated 25 September 2023 and a subsequent order dated 29 December 2023, passed by the Sales Tax Officer Class II. The petitioner contended that the SCN was placed under the "Additional Notices and Orders" tab on the GSTN portal, depriving them of a reasonable opportunity to respond and contest the assessment proceedings. The respondents, represented by the GNCTD, had previously disclosed in similar cases that structural and corrective measures were incorporated into the GSTN portal only from 16 January 2024. The impugned SCN and order were issued prior to these corrective measures.
Held
The Court held that the petitioner was not placed on due notice of the proceedings initiated by the respondents. The reasoning was based on the conceded position that the GSTN portal's structural and corrective measures were implemented only from 16 January 2024, and the impugned Show Cause Notice and order predated this change. Consequently, the Court found that the petitioner was deprived of a reasonable opportunity to respond. The Court decided to set aside the final order and quashed the order dated 29 December 2023. The competent authority was directed to commence proceedings afresh from the stage of issuing the SCN dated 25 September 2023 and conclude them in accordance with law after providing the writ petitioner with an opportunity of hearing. All rights and contentions of the respective parties on merits were expressly kept open.
Key Issues
1. Whether the petitioner was afforded a reasonable opportunity to respond to the Show Cause Notice dated 25 September 2023, considering its placement on the GSTN portal, thereby raising a question of procedural fairness under the Goods and Services Tax regime. Petitioner's Argument: The petitioner argued that the SCN was not properly communicated or made accessible due to its placement under the "Additional Notices and Orders" tab, which prevented them from participating effectively in the assessment proceedings and contesting the allegations. They relied on the fact that the GSTN portal's corrective measures for such notices were implemented only after the issuance of the impugned SCN and order. Revenue's Argument: The respondents, through their counsel, were requested to obtain instructions regarding the placement of the SCN. While no specific argument against the petitioner's claim of lack of opportunity was explicitly recorded, the court noted the respondents' disclosure about the GSTN portal's functionality updates.
Sections Cited
None explicitly mentioned in the judgment text provided.
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Cause title — parties, addresses and appearances
O R D E R %
2025
We had on the last occasion and on taking note of the primary challenge which stood raised, requested Ms. Gupta, learned counsel representing the respondents to obtain instructions. This in light of the Show Cause Notice [“SCN”] dated 25 September 2023 having allegedly been placed under the “Additional Notices and Orders” tab.
It is in the aforesaid backdrop that the petitioner had contended that it was deprived of a reasonable opportunity of responding to the notice and contesting the assessment proceedings.
We find that in a series of writ petition in which an identical controversy was raised, the respondents had disclosed that structural functionality and corrective measures had been incorporated in the Goods and Services Tax Network [“GSTN”] portal only with effect This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 19:27:30
from 16 January 2024. 4. Undisputedly, the impugned order as well as the SCN which are impugned herein are of a vintage prior to those corrective measures having been taken by the GSTN department. In view of the conceded position noted above, we have no option but to accept the allegation of the writ petitioner that it had not been placed on due notice of the proceedings initiated by the respondents.
Therefore, and in our considered opinion, the ends of justice would warrant the final order being set aside and the competent authority being required to commence proceedings afresh from the stage of issuance of the SCN and to conclude proceedings in accordance with law after affording an opportunity of hearing to the writ petitioner.
Accordingly, we allow the present writ petition and quash the order of 29 December 2023. We direct the competent authority of the respondents to conclude the proceedings which were commenced pursuant to the SCN dated 25 September 2023 in accordance with law and by providing an opportunity of hearing to the writ petitioner.
All rights and contentions of respective parties on merits are kept open.
YASHWANT VARMA, J.
HARISH VAIDYANATHAN SHANKAR, J. MARCH 18, 2025/DR This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 19:27:30
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.