GMT Garments Vs Union of Ors. (Delhi High Court)
New Delhi: In a significant ruling concerning the digital communication between tax authorities and taxpayers, the Delhi High Court has held that a show cause notice (SCN) uploaded solely on the ‘additional notices’ tab of the Goods and Services Tax (GST) portal does not constitute proper service. The court’s decision, in the case of GMT Garments versus Union of India and Others, led to the restoration of a taxpayer’s appeal that was previously dismissed by the appellate authority on grounds of being time-barred.
The petitioner, M/s GMT Garments, approached the High Court challenging the validity of certain notifications issued by the Central Tax department and, more importantly, the procedural validity of an SCN issued to them. The challenge to the notifications (Notification Nos. 09/2023-Central Tax dated March 31, 2023, and 56/2023-Central Tax dated December 28, 2023) was noted by the High Court as being a matter pending consideration before the Supreme Court in the case of M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. The High Court stated that its stance on the notifications would be subject to the final outcome of the Supreme Court’s decision, aligning with its previous orders in similar writ petitions, such as DJST Traders Private Limited vs. Union of India & Ors.
