Carona Electricals Through Its Proprietor Prabhat Kadyan vs. Commissioner Of Delhi Goods And Services Tax And Anr
Facts
The petitioner, Carona Electricals, challenged a final order dated December 12, 2023, passed under Section 73 of the Central Goods and Services Tax Act, 2017. This order followed a Show Cause Notice (SCN) dated September 29, 2023. The petitioner's primary contention was that the SCN was placed in the 'Additional Notices and Orders' tab on the GST portal, which deprived them of the opportunity to respond. The respondents acknowledged that the portal architecture was modified on January 16, 2024, to include all notices under the 'General Notices' tab, but this change occurred after the SCN and the final order in question.
Held
The Court found substance in the petitioner's stand regarding the lack of proper notice. It was held that the final order dated December 12, 2023, could not be sustained because the petitioner was indeed deprived of a meaningful opportunity to respond to the SCN. The Court noted that the modification to the GST portal, which made notices more accessible, occurred only on January 16, 2024, after the SCN and the impugned order were issued. Consequently, the Court quashed and set aside the final order. However, recognizing that the petitioner was now aware of the SCN, the Court allowed them to file a detailed response within a stipulated time frame to be determined by the respondents. The SCN proceedings were to be taken forward and disposed of in accordance with the law thereafter.
Key Issues
1. Whether the placement of the Show Cause Notice (SCN) dated September 29, 2023, solely in the 'Additional Notices and Orders' tab of the GST portal, deprived the petitioner of a reasonable opportunity to respond, thereby vitiating the subsequent final order dated December 12, 2023, passed under Section 73 of the Central Goods and Services Tax Act, 2017? Petitioner's argument: The petitioner contended that the SCN was not accessible in a manner that allowed them to respond, as it was placed in a specific tab that they were allegedly deprived of viewing. This lack of proper notice prejudiced their right to present their case. Revenue's argument: The respondents, represented by Mr. Udit Malik, informed the Court that the GST portal architecture was modified on January 16, 2024, to make all notices available under the 'General Notices' tab. However, they did not dispute that the SCN and the final order in this case predated this modification.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2024
We take note of the challenge which stands raised to the final order dated 12 December 2023 passed under Section 73 of the Central Goods and Services Tax, 2017 [„Act‟] and which was preceded by the issuance of a Show Cause Notice [„SCN‟] dated 29 September 2023. 2. The principal allegation levelled in the writ petition was that since the SCN came to be placed in the „Additional Notices and Orders‟ tab, the petitioner was deprived of a right to respond.
We are informed by Mr. Malik, learned counsel representing the respondents, that the architecture of the Goods and Services Tax portal was duly modified and amended and now
The judgment continues below.
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