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.
