GST Update

 Desk of CA. Praveen Sharma – 1039 Series (CAPS) 

BOMBAY HIGH COURT IN THE CASE OF NHD Motors v. The Government of NCT of Delhi & Anr.

Bombay High Court: SCN Uploaded Only in “Additional Notices” Tab Is Not Valid Service

The Bombay High Court has held that merely uploading a Show Cause Notice (SCN) in the "Additional Notices" tab on the GST portal does not amount to valid service under the GST law. The notice must be served in a manner that ensures it is effectively brought to the taxpayer's attention.

In the case of NHD Motors v. The Government of NCT of Delhi & Another, the dispute arose from a Show Cause Notice issued under Section 73 of the CGST Act. The Department had uploaded the notice only in the "Additional Notices" section of the GST portal. As a result, the taxpayer was unaware of the notice and could not file a reply within the prescribed time.

The High Court observed that the purpose of serving a notice is to provide the taxpayer with a real and meaningful opportunity to present their case. Merely placing a notice in a part of the portal that is not ordinarily visible or easily accessible does not satisfy the requirement of effective service.

Holding that the taxpayer had been denied the principles of natural justice, the Court set aside the adjudication order and remanded the matter to the proper officer for fresh proceedings after ensuring proper service of the Show Cause Notice.

The judgment highlights that service of notices through the GST portal must be genuine and effective. A technical upload alone cannot replace proper communication that enables the taxpayer to exercise the right to be heard.

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Regards
CAPS