Case Law Details
Umang Realtech Private Limited Vs Union Of India & Ors. (Delhi High Court)
Umang Realtech Private Limited petitioned against an order from December 7, 2023, which disposed of a Show Cause Notice from September 25, 2023, proposing a demand of Rs. 5,83,18,566.00 against the petitioner under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner alleged unawareness of the initiation of proceedings, as the notice was only uploaded on the portal under the category of “Additional Notices” and not communicated through any other means.
The petitioner cited the judgment of the High Court of Madras in W.P. No.26457/2023, where similar issues were addressed regarding the placement of communications on the web portal under different headings. The Madras High Court directed the respondents to address the discrepancy arising from posting information under separate headings. Additionally, the petitioner referred to other judgments of the Madras High Court highlighting similar issues regarding the placement of notices on the web portal and the subsequent failure of the parties to notice and respond to them.
The petitioner argued that the design of the web portal led to the failure to notice the notice, as it was uploaded under the category of “Additional Notices,” and hence, the petitioner could not respond to the Show Cause Notice. The petitioner further pointed out that this issue was addressed in another judgment of the Madras High Court, where the portal was redesigned to consolidate both “View Notices” and “View Additional Notices” tabs under one heading.
Considering the submissions, the Delhi High Court concluded that the petitioner missed receiving the notice due to its placement under the “Additional Notices” tab on the portal. The impugned order recorded that the petitioner did not reply or appear in person, leading to an ex-parte demand creation. However, since the only reason for passing the impugned order was the petitioner’s failure to file a reply or explanation, the court deemed it necessary to grant the petitioner an opportunity to respond to the Show Cause Notice.
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