Delhi High Court Sets Aside Rs. 11 Lakh GST Demand, Cites Improper Service of Show Cause Notice

The Delhi High Court has set aside a tax demand of ₹11,12,023 raised against Triveni Sales Corporation, holding that the company was denied a fair opportunity to respond to a Show Cause Notice (SCN) issued by the Department of Trade and Taxes, Government of NCT of Delhi.

The Bench of Justice Prathiba M. Singh and Justice Shail Jain observed that the SCN was uploaded only on the “Additional Notices” tab of the GST portal, which was not adequately visible to taxpayers at the time. Consequently, the petitioner could not respond in time, and an order was passed against it on 30 March 2024.

The court noted that similar issues had arisen in other cases where notices uploaded in the “Additional Notices & Orders” tab went unnoticed. Referring to its earlier judgments, the court stressed that taxpayers must be given a clear opportunity to present their case before any demand is raised.

The court remanded the case back to the adjudicating authority, directing that Triveni Sales be allowed to refile its reply by 31 August 2025. The authority was instructed to issue a fresh notice for personal hearing via both email and mobile communication.

The bench further clarified that the fresh order to be passed would remain subject to the Supreme Court’s decision in S.L.P No. 4240/2025 (M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors).

Additionally, the court directed that Triveni Sales be provided access to the GST portal within one week to enable it to upload its reply and review all related documents.

Case Details

Case Title: Triveni Sales Corporation Versus Government Of NCT Of Delhi

Case No.: W.P.(C) 10995/2025 & CM APPL. 45304/2025 CM APPL. 45305/2025

Date:  28th July, 2025

Counsel For  Petitioner: S Jaikumar

Counsel For Respondent: Appearance not given

Read More: Delhi High Court Dismisses Tata Play’s Plea Against Rs. 10.4 Crore GST Demand

Mariya Paliwala
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