Garg India Plastics Vs Union of India (Delhi High Court)
Delhi High Court has set aside a show cause notice (SCN) and a subsequent assessment order issued by the Department of Trade and Taxes against M/s Garg India Plastics for the Financial Year 2019-20. The Court’s decision primarily stems from the petitioner’s claim of being denied access to the Goods and Services Tax (GST) portal due to a prior cancellation of their registration, which prevented them from receiving the SCN and participating in the proceedings.
Garg India Plastics had approached the High Court challenging the SCN dated May 30, 2024, and the resultant order dated August 28, 2024. A significant aspect of their petition also involved challenging the legality of Notification No. 56/2023-Central Tax dated December 28, 2023, which extended certain deadlines under the GST Act.
Petitioner’s Inability to Respond:
The core of Garg India Plastics’ argument was that their GST registration had been cancelled on March 24, 2021. This cancellation, they contended, deprived them of access to their GST portal account, rendering them unaware of the SCN’s issuance and any subsequent proceedings. Consequently, the petitioner was unable to file a reply or avail a personal hearing, leading to an ex-parte order being passed without their input on the merits of the case. The petitioner asserted that the impugned order was non-speaking and violated principles of natural justice.
