In a key judgment reinforcing digital compliance responsibility, the Delhi High Court held that an assessee cannot escape liability by claiming ignorance of a show cause notice (SCN) uploaded on the GST portal, if due diligence was not exercised in checking the portal regularly.
Court’s Observation on Portal Compliance
A division bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta made it clear that taxpayers are expected to monitor the GST portal diligently. The Court observed:
“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.”
Background of the Case
The petitioner, Sandeep Garg, a proprietor engaged in trading and manufacturing plastic components, approached the Court against an order raising a GST demand of ₹9,21,326. The petitioner argued that the SCN was neither served nor properly notified, as it was uploaded under the ‘Additional Notices and Orders’ tab instead of the ‘Notices and Orders’ tab on the GST portal.
Department’s Stand and Court’s Response
The tax department countered the claims by stating:
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A reminder notice had also been issued.
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The system sends automated emails and SMS alerts when documents are uploaded.
Based on these facts, the Court held that failure to respond to the SCN lies squarely with the petitioner, not the department. It emphasized that electronic service via the GST portal is valid, and assessees have a responsibility to check all sections of the portal.
Relief Granted
While the Court refused to quash the demand order, it allowed the petitioner to:
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File an appeal before the Appellate Authority, and
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Comply with the pre-deposit requirement as per law.
Legal Representation
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For the Petitioner: Mr. Rajeev Aggarwal and Mr. Shubham Goel
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For the Department: Ms. Vaishali Gupta, Panel Counsel (Civil), GNCTD
Case Details
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Case Title: Sandeep Garg v. Sales Tax Officer Class II, Avato Ward 66, Zone 4, Delhi
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Case Number: W.P.(C) 5846/2025
Key Takeaway:
Taxpayers must actively monitor the GST portal, including all tabs, to avoid missing critical communications. Courts are unlikely to entertain pleas of ignorance if digital notices are duly uploaded and reminders are issued.