The Delhi High Court recently clarified a significant aspect of the GST process, stating that the department cannot be blamed if an assessee fails to regularly check the GST portal for show cause notices (SCN). This ruling came as a response to a petition filed by a business owner challenging an order demanding ₹9,21,326/- from them.
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The Case
The petitioner, a proprietor of a firm engaged in manufacturing plastic components, argued that they were unaware of the SCN. According to the petitioner, the notice was uploaded in the 'additional notices and orders' section of the GST portal, not the 'notices and orders' section. This, they claimed, meant the SCN was not served correctly.
The department, on the other hand, insisted that they had sent reminder notices and also issued automated e-mails and SMSs whenever updates were made to the GST portal. However, despite these reminders, the petitioner failed to respond or take action.
The division bench, consisting of Justices Prathiba M. Singh and Rajneesh Kumar Gupta, ruled that the department cannot be held responsible for the assessee's lack of diligence in checking the portal.
As stated by the court:
“Since the Petitioner has not been diligent in checking the portal, no reply to the Show Cause Notice has been filed by the Petitioner. Thus the department cannot be blamed.”
The court’s decision reflects a strong stance on the responsibility of the assessee to monitor the GST portal and respond to notices promptly.
The High Court refused to intervene in the demand raised by the department, which was for a substantial amount. However, the court provided the petitioner with an opportunity to file an appeal against the order before the Appellate Authority, subject to the pre-deposit condition.
- Regular Monitoring: Assessees are expected to be diligent in checking the GST portal regularly to avoid missing important communications like the Show Cause Notice.
- Department's Responsibility: The department cannot be blamed for the assessee’s failure to check the portal, especially when reminders and automated notifications are sent.
- Appeal Option: The petitioner was granted the chance to challenge the demand by filing an appeal, but it comes with the condition of a pre-deposit.
Appearance: Mr. Rajeev Aggarwal and Mr. Shubham Goel, Advocates for Petitioner; Ms. Vaishali Gupta, Panel Counsel (Civil) GNCTD.
Case title: Sandeep Garg v. Sales Tax Officer Class II Avato Ward 66 Zone 4 Delhi
Case no.: W.P.(C) 5846/2025
