Dept Not at Fault if Assessee Fails to Check GST Portal for Show Cause Notice

Sandeep Garg Vs Sales Tax Officer Class II Avato Ward 66 Zone 4 Delhi (Delhi High Court)

In a recent ruling, the Delhi High Court addressed the responsibility of taxpayers to regularly check the Goods and Services Tax (GST) portal for official communications, stating that the tax department cannot be held liable if an assessee fails to remain diligent in this regard. The judgment came in the case of Sandeep Garg, proprietor of M/s Aares Spring Industries, who challenged an order passed against him, arguing that he was neither granted a hearing nor properly served the show cause notice (SCN).

The petitioner, engaged in the business of trading and manufacturing plastic components, nut bolts, and similar items, holds GSTIN 07AAFPG5092B1Z2 with a principal place of business in Wazirpur Industrial Area, Delhi. The core of the petitioner’s contention was that the SCN, dated December 26, 2023, was uploaded by the tax authorities in the ‘additional notices and orders’ tab on the GST portal rather than the standard ‘notices and orders’ tab. This, the petitioner argued, constituted improper service and led to the lack of knowledge about the proceedings. The impugned order, subsequently passed on April 16, 2024, stemmed from these proceedings, with a total demand of Rs. 9,21,326, including a tax amount of Rs. 4,52,956.