Svas Med Private Limited vs. Sales Tax Officer Class-Ii/Avato Ward 101 Zone 9 Delhi
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The petitioner, SVAS Med Private Limited, approached the Delhi High Court challenging an order dated December 19, 2023, passed under Section 73 of the Central Goods and Services Tax Act, 2017, and subsequent attachment proceedings initiated by the respondent, Sales Tax Officer Class-II/AVATO Ward 101 Zone 9 Delhi. The primary contention raised by the petitioner was that they were denied an opportunity of hearing because the Show Cause Notice (SCN) preceding the assessment order was placed in the 'Additional Notices and Orders' tab on the GST portal. The respondent conceded that corrective measures regarding the placement of notices on the GST portal were implemented only after January 16, 2024.
Held
The Court allowed the writ petition and quashed the impugned order dated December 19, 2023. The Court found the petitioner's argument regarding the denial of an opportunity of hearing to be uncontested by the respondent. The reasoning was based on the fact that the SCN was placed in the 'Additional Notices and Orders' tab and that corrective measures for portal notice placement were taken only after January 16, 2024, which was subsequent to the impugned order. The Court held that this procedural deficiency denied the petitioner a fair chance to respond. The ratio decidendi is that a Show Cause Notice must be effectively communicated to the assessee to ensure compliance with principles of natural justice. The Court directed the respondents to commence proceedings from the stage of issuing the SCN, granting the petitioner an opportunity to file a response and a personal hearing. The petitioner was given three weeks to file their replies. All rights and contentions on merits were kept open.
Key Issues
1. Whether the placement of the Show Cause Notice (SCN) in the 'Additional Notices and Orders' tab on the GST portal, prior to the issuance of the impugned order dated December 19, 2023, deprived the petitioner of a reasonable opportunity of hearing, thereby vitiating the order under Section 73 of the Central Goods and Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that the SCN was not properly communicated as it was placed in an 'Additional Notices and Orders' tab, which they claim they were not aware of or did not have access to in a timely manner, thus denying them a fair opportunity to respond. They relied on the principle of natural justice, specifically the right to be heard. Respondent's Contention: The respondent did not contest the petitioner's assertion regarding the placement of the SCN and the timing of corrective measures, implicitly acknowledging the procedural lapse.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2025
The writ petitioner has approached this Court challenging the order dated 19 December 2023 passed under Section 73 of the Central Goods and Services Tax Act, 2017 [‘Act’] as well the consequential attachment proceedings that have been initiated by the respondents.
The principal ground of challenge which was addressed before us was of the writ petitioner having been deprived of an opportunity of hearing since the Show Cause Notice [‘SCN’] which is stated to have preceded the framing of the final order of assessment, was placed in the ‘Additional Notices and Orders’ tab.
We note that the impugned order itself is dated 19 December 2023. As per the disclosures made by the respondents before us in these proceedings, we are informed that corrective measures with 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 18:15:51
respect to the placement of notices on the Goods and Services Tax portal were taken only post 16 January 2024. 4. The position, therefore, as canvassed by the writ petitioner appears to be uncontested.
In view of the aforesaid, we allow the instant writ petition and quash the impugned order dated 19 December 2023. 6. We leave it open to the respondents to commence proceedings from the stage of issuance of the SCN by providing an opportunity to the writ petitioner to file its response as well as to be accorded an opportunity of personal hearing. The writ petitioner shall file its replies to the SCN within a period of three weeks from today. The proceedings may thereafter be taken to their logical conclusion in accordance with law.
All rights and contentions of respective parties on merits are kept open.
YASHWANT VARMA, J.
HARISH VAIDYANATHAN SHANKAR, J. JANUARY 29, 2025/v 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 18:15:51
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.