2025 (3) TMI 1307 - HC - GST

Service of SCN for the assessment year 2019-2020 - stand of the Petitioner is that the Petitioner came to know of the impugned order dated 24th August 2024 only in January 2025 - HELD THAT - Instead of permitting the matter to proceed in default since the Petitioner has categorically stated that it did not receive the notice the Petitioner is permitted to file an appeal within two weeks challenging the impugned order dated 24th August 2024 in the unique facts and circumstances of this Court. It is made clear that if the appeal is not filed within two weeks and there is any delay then the condonation of delay shall be considered by the appropriate appellate authority in accordance with law. Petition disposed off.

ISSUES PRESENTED and CONSIDERED

The core legal questions considered in this judgment include:

Whether the service of the show cause notice for the assessment year 2019-2020 was duly effected on the Petitioner, M/s. ABC Enterprises, as per the provisions of the Delhi Goods and Service Tax Act, 2017.
Whether the impugned order dated 24th August, 2024, passed under Section 73 of the Delhi Goods and Service Tax Act, 2017, should be quashed due to alleged non-receipt of notice by the Petitioner.
Whether the Petitioner is entitled to challenge the notifications issued by the Central Board of Indirect Taxes and Customs and the Principal Commissioner (Finance), Delhi Goods and Service Tax, as being violative of the Central/Delhi GST Act, 2017 and the Constitution of India.

ISSUE-WISE DETAILED ANALYSIS

1. Service of Show Cause Notice for 2019-2020

Relevant legal framework and precedents: The Delhi Goods and Service Tax Act, 2017, mandates proper service of show cause notices to taxpayers, typically through registered communication channels.
Court's interpretation and reasoning: The Court examined the affidavit submitted by the Respondent, which detailed the service process involving automated emails and SMS notifications to the Petitioner's registered email and mobile number.
Key evidence and findings: The Respondent provided a table showing the issuance of notices and reminders for the years 2017-18, 2018-19, and 2019-2020, with specific reference to the automated communication methods employed.
Application of law to facts: The Court noted that the Petitioner had responded to notices in previous years (2017-18 and 2018-19) using the same communication methods, which undermined the Petitioner's claim of non-receipt for 2019-2020.
Treatment of competing arguments: The Petitioner argued that it was unaware of the notice until January 2025, but the Court found the Department's consistent service method credible, given the Petitioner's past compliance.
Conclusions: The Court concluded that the Petitioner's claim of non-receipt was not credible, given the established service process and past compliance.

2. Quashing of the Impugned Order Dated 24th August, 2024

Relevant legal framework and precedents: Section 73 of the Delhi Goods and Service Tax Act, 2017, governs the issuance of orders related to tax demands and the conditions under which they may be challenged.
Court's interpretation and reasoning: The Court considered the Petitioner's claim that it became aware of the order only in January 2025, due to its appearance under 'Additional Notices' on the GST Portal.
Key evidence and findings: The Petitioner's affidavit dated 24th February 2025 was reviewed, which claimed late awareness of the order.
Application of law to facts: The Court determined that the Petitioner should be allowed to challenge the order through an appeal, given the unique circumstances and the Petitioner's assertion of non-receipt.
Treatment of competing arguments: While the Department maintained proper service, the Court acknowledged the Petitioner's claim of delayed awareness and allowed for an appeal to be filed.
Conclusions: The Court permitted the Petitioner to file an appeal within two weeks, highlighting the need for timely action and potential consideration of delay by the appellate authority.

3. Challenge to Notifications

Relevant legal framework and precedents: The notifications in question were issued under the Central/Delhi GST Act, 2017, and their constitutional validity was initially challenged by the Petitioner.
Court's interpretation and reasoning: The Petitioner decided not to press the challenge against the notifications during the proceedings.
Key evidence and findings: The Petitioner's withdrawal of the challenge was noted in the Court's decision.
Application of law to facts: The Court acknowledged the Petitioner's decision to withdraw the challenge and focused on the remaining issues.
Treatment of competing arguments: As the challenge was withdrawn, no further arguments were considered on this point.
Conclusions: The Court disposed of the petition without addressing the notification challenge, as it was not pursued by the Petitioner.

SIGNIFICANT HOLDINGS

Preserve verbatim quotes of crucial legal reasoning: The Court stated, "Under these circumstances, instead of permitting the matter to proceed in default, since the Petitioner has categorically stated that it did not receive the notice, the Petitioner is permitted to file an appeal within two weeks challenging the impugned order dated 24th August, 2024 in the unique facts and circumstances of this Court."
Core principles established: The judgment underscores the importance of adhering to established service procedures and the credibility of automated communication methods for legal notices. Additionally, it highlights the Court's willingness to allow appeals in cases of alleged non-receipt, provided there is timely action.
Final determinations on each issue: The Court permitted the Petitioner to file an appeal against the impugned order, while noting the withdrawal of the challenge to the notifications. The petition was disposed of with instructions for timely filing of the appeal and consideration of delay by the appellate authority if necessary.

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