New Allied LPG Appliances Vs Sales Tax Officer Class II/Avato (Delhi High Court)
The Delhi High Court has set aside a tax order passed against New Allied LPG Appliances, holding that the issuance of the Show Cause Notice (SCN) in an obscure tab on the Goods and Services Tax (GST) portal denied the petitioner a fair opportunity to reply and be heard. The court’s decision, passed in the case of New Allied LPG Appliances Vs Sales Tax Officer Class II/Avato, remands the matter back to the adjudicating authority for fresh consideration on the merits of the case.
The petitioner had challenged the SCN dated September 23, 2023, and the consequent order dated December 3, 2023, for the Financial Year 2017-18, which raised a significant tax demand. A key factual submission by the petitioner was that the SCN was uploaded only on the ‘Additional Notices Tab’ of the GST portal. This non-standard placement meant the notice was not brought to the petitioner’s knowledge, resulting in no reply being filed and the impugned order being passed ex-parte (without the party’s presence).
The Department of Sales Tax argued that a reminder notice was also issued on November 21, 2023, yet the petitioner failed to respond.
