Case Law Details
India Retails And Hospitality Private Limited Vs Sales Tax Officer Class II Avato Ward 101 Zone 9 Delhi & Anr. (Delhi High Court)
Delhi High Court, in India Retails And Hospitality Private Limited Vs Sales Tax Officer Class II Avato Ward 101 Zone 9 Delhi & Anr., addressed a critical procedural lapse concerning show-cause notices (SCNs) uploaded on the online system before January 16, 2024. The Court observed that such notices often went unnoticed by the concerned parties due to their placement in the “Additional Notices & Orders” tab of the online portal. Consequently, many assessees were denied a fair opportunity of being heard.
The Court has urged the respondent tax authorities to implement a departmental mechanism to review these cases systematically. Specifically, it directed that remedial measures be devised to address SCNs uploaded before the said date, ensuring that taxpayers are not forced to approach the judiciary for rectification. A policy to resolve these procedural irregularities must be formulated within two weeks from the order’s issuance.
The petitioner argued that their right to a fair hearing had been compromised due to the manner in which the SCN was uploaded. Recognizing the gravity of the issue, the Court advised the respondents to create an internal review framework to address such grievances. The Court expressed its expectation that the tax authorities would proactively adopt measures to resolve these cases, rather than requiring taxpayers to resort to litigation.
The Delhi High Court’s next hearing on the matter is scheduled for March 4, 2025. Until then, the tax authorities are expected to develop a robust mechanism to address SCNs issued before January 16, 2024.
Hon’ble Delhi High Court has made below remarks on all notices and orders uploaded prior to 16-01-2024.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. We take note of the principal challenge which stands raised herein with it being contended that the petitioner was denied an opportunity of hearing by virtue of the Show Cause Notice [„SCN‟] being placed in the “Additional Notices & Orders” tab. We, consequently, direct learned counsel for the respondents to obtain instructions.
2. The respondents would also be well advised to formulate measures at a departmental level to review all such matters and which may pertain to SCNs issued or uploaded prior to 16 January 2024 and thus not being saved. We would hope that the respondents would thus put in place a machinery which would consider the remedial measures that could be adopted of their own volition without assessees being constrained to approach this Court.
3. Let appropriate instructions be provided by the respondents in that light to learned counsels who appear on their behalf in these matters.
4. Let the writ petitions be called again on 04.03.2025.
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