Priyanka Goyal Vs Sales Tax Officer (Delhi High Court)
In a recent ruling, the Delhi High Court has quashed an order imposing a GST demand of over Rs. 1 crore against petitioner Priyanka Goyal, citing a departmental failure in properly communicating a Show Cause Notice (SCN). The court found that the SCN was uploaded to an obscure ‘Additional Notice’ tab on the GST portal, preventing the petitioner from becoming aware of it and subsequently responding.
The case, Priyanka Goyal Vs Sales Tax Officer, involved a demand of Rs. 1,04,57,420 raised through an ex-parte order dated December 23, 2023, following an SCN issued on September 22, 2023, under Section 73 of the CGST Act. The petitioner stated that she had no knowledge of this SCN or the resulting order until she encountered another SCN issued under Section 74 of the Act. She contended that the SCN being placed under the ‘Additional Notice’ tab meant it did not come to her attention.
The Delhi High Court referred to its previous judgments, particularly Neelgiri Machinery through its Proprietor Mr. Anil Kumar V. Commissioner Delhi Goods And Service Tax And Others. This precedent, along with orders in Satish Chand Mittal (Trade Name National Rubber Products) vs. Sales Tax Officer SGST, Ward 25-Zone 1 and Anant Wire Industries vs. Sales Tax Officers Class II/Avato, Ward 83 & Anr, established a consistent position: matters should be remanded to ensure petitioners receive a fair opportunity to be heard when SCNs are not properly accessed due to placement in the ‘Additional Notices & Orders’ tab.
