Udayraj Yadav Proprietor Zenith Creative Services Vs Sales Tax Officer (Delhi High Court)
In a recent verdict, the Delhi High Court addressed the case of Udayraj Yadav, proprietor of Zenith Creative Services, against a demand of Rs 22 lakhs imposed by the Sales Tax Officer. The dispute arose due to the improper uploading of a Show Cause Notice (SCN) on the GST portal.
The petitioner, Udayraj Yadav, contested the demand citing unawareness of the proceedings initiated against them. The crucial Show Cause Notice was uploaded under the category of “Additional Notices” on the portal, which went unnoticed by the petitioner. This procedural anomaly has been highlighted in judgments from the Madras High Court, emphasizing the need for clarity in the portal’s architecture to ensure proper communication of legal notices.
The Delhi High Court, considering the petitioner’s argument and precedent from the Madras High Court, ruled in favor of Udayraj Yadav. The court set aside the demand, attributing the oversight to the complex design of the portal. It directed authorities to enable the petitioner to respond to the Show Cause Notice within a stipulated timeframe and subsequently re-adjudicate the matter.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
Petitioner impugns order dated 14.03.2024 whereby the impugned Show Cause Notice dated 13.12.2023, proposing a demand of Rs.22,83,154.00 against the petitioner has been disposed of and a demand including penalty had been created against the Petitioner. The order has been passed under Section 73 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the Act).
