Bhopal Singh vs. Commissioner Of Delhi Goods And Service Tax & Anr.
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The petitioner, Bhopal Singh, challenged a final order of assessment passed by the Commissioner of Delhi Goods and Service Tax and another authority under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner contended that the Show Cause Notice (SCN) dated September 27, 2023, was never served because it was placed in the "Additional Notices and Orders" tab on the GSTN portal. The Court was informed that structural changes were made to the GSTN portal only from January 16, 2024, and the SCN in question was issued prior to these changes. This indicated that the petitioner's contention regarding non-service of the SCN was likely correct.
Held
The Court allowed the writ petition, quashing the final order of assessment dated December 28, 2023. The Court found merit in the petitioner's contention that the Show Cause Notice (SCN) dated September 27, 2023, was not effectively served. This was based on the information that structural changes were made to the GSTN portal only from January 16, 2024, and the SCN was issued prior to these functional enhancements. Consequently, the Court held that the petitioner was not afforded a proper opportunity of hearing, violating principles of natural justice. The proceedings were ordered to be revived from the date of issuance of the SCN. The respondent authorities were directed to proceed with the SCN in accordance with the law, ensuring an opportunity of hearing is provided to the petitioner. All rights and contentions of the parties on merits were expressly kept open.
Key Issues
1. Whether the Show Cause Notice dated September 27, 2023, was validly served upon the petitioner in accordance with the law, considering its placement in the "Additional Notices and Orders" tab of the GSTN portal, thereby violating the principles of natural justice? Petitioner's Contention: The petitioner argued that the SCN was never served as it was uploaded to a section of the GSTN portal that was not readily accessible or considered a primary communication channel. This failure to provide a proper opportunity of hearing vitiated the subsequent assessment order. Revenue's Contention: The respondents, represented by the Commissioner of Delhi Goods and Service Tax and another authority, did not explicitly record any arguments against the petitioner's claim of non-service. However, the Court sought instructions on the matter, implying an inquiry into the portal's functionality.
Sections Cited
Section 73
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Cause title — parties, addresses and appearances
O R D E R %
2025
The writ petitioner had approached this Court assailing the final order of assessment made by the respondents in purported exercise of powers conferred by Section 73 of the Central Goods and Services Tax Act, 2017. 2. The principal ground of challenge was a failure on the part of the respondents to provide an opportunity of hearing with it being contended that the Show Cause Notice [“SCN”] dated 27 September 2023 was never served since it was placed in the “Additional Notices and Orders” tab. It was in the aforesaid backdrop that we had requested Mr. Agarwal, learned counsel to obtain instructions.
We are today informed that structural changes were made in the 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 19:50:46
GSTN portal only with effect from 16 January 2024 and since the SCNs with which we are concerned in the instant writ petitions came to be issued prior to those functionalities being introduced, the contention of the petitioner would appear to be correct.
In view of the aforesaid, we allow the present writ petition and quash the order dated 28 December 2023. The proceedings shall consequently stand revived from the date of issuance of the SCN dated 27 September 2023. 5. The respondent shall now proceed to dispose of the SCN 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. FEBRUARY 07, 2025/neha
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 19:50:46
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.