Anil Kumar Vs Sales Tax Officer (Delhi High Court)
The Delhi High Court heard and finally disposed of a writ petition challenging a show cause notice dated 15 December 2023 and an order-in-original dated 3 April 2024 issued by the tax authorities. The petitioner sought quashing of both instruments, contending that the show cause notice proposing a tax demand of ₹10,91,910—on grounds of alleged excess Input Tax Credit due to GSTR-2A and GSTR-3B mismatch, non-reversal of Input Tax Credit relating to exempt supplies, and Input Tax Credit claimed from dealers whose registrations had been cancelled—was not validly served. According to the petitioner, the notice and a reminder were uploaded only under the “Additional Notices and Orders” tab on the GST portal, a mode that did not come to the petitioner’s knowledge, resulting in lack of awareness of the proceedings.
It was argued that due to the absence of proper service, the petitioner was deprived of an effective opportunity to respond. Despite this, the authorities proceeded to pass the order-in-original solely on the ground of non-prosecution, without granting a reasonable opportunity of being heard. The petitioner submitted that service limited to the “Additional Notices” tab does not constitute substantial service when it fails to bring the notice to the assessee’s knowledge, and that such a defect vitiates both the notice and the consequential order. The petitioner expressed willingness to submit a reply and participate in a personal hearing if granted an opportunity, and requested a reasoned order thereafter.
