Udayraj Yadav Proprietor-Zenith Creative Services Vs Sales Tax Officer Class II AVATO Ward 96 Zone 09 Delhi & Anr. (Delhi High Court)
In a significant judgment, the Delhi High Court has quashed a GST demand of ₹12,92,704 against Udayraj Yadav, proprietor of Zenith Creative Services, due to improper communication of the Show Cause Notice (SCN) via the GST portal. The case, Udayraj Yadav vs Sales Tax Officer Class II AVATO Ward 96 Zone 09 Delhi & Anr., highlights the critical importance of clear communication in tax proceedings.
Background of the Case
The petitioner, Udayraj Yadav, was unaware of the initiation of proceedings against him due to the SCN being uploaded under the “Additional Notices” category on the GST portal. The SCN, dated September 23, 2023, proposed a demand of ₹12,92,704. The petitioner argued that he did not receive any other form of communication, and as a result, he could not respond to the notice.
Court’s Observations
The Delhi High Court took note of similar judgments by the Madras High Court, where the issues arising from the bifurcation of notices into different categories on the GST portal were discussed. Specifically, in cases like M/s East Coast Constructions and Industries Ltd. vs. Assistant Commissioner (ST) and Murugesan Jayalakshmi vs. State Tax Officer, the courts had addressed the confusion caused by notices being uploaded under separate headings.
