Ace Cardiopathy Solutions Private Limited Vs Union of India And Ors. (Delhi High Court)

In a significant ruling, the Delhi High Court addressed the procedural issues surrounding the visibility and accessibility of GST notices on the government portal in the case of Ace Cardiopathy Solutions Pvt Ltd Vs Union of India and Ors. The petitioner challenged an order dated March 13, 2024, issued under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act), which raised a demand against them. The core issue revolved around the petitioner’s inability to access and respond to a Show Cause Notice due to its misplacement under the ‘Additional Notices’ category on the GST portal. This article delves into the details of the case, the court’s analysis, and its implications for GST compliance.Detailed Analysis1. Background and Petitioner’s Argument: The petitioner, Ace Cardiopathy Solutions Pvt Ltd, contested the order dated March 13, 2024, claiming they never received the Show Cause Notice issued on December 8, 2023. The petitioner argued that the notice was uploaded under ‘Additional Notices,’ a less accessible category on the GST portal, which led to them missing it. Consequently, they were unable to respond, resulting in the demand order.2. Respondent’s Standpoint: The respondent contended that under Section 169 of the CGST Act, uploading the notice on the portal constitutes sufficient compliance for notifying the taxpayer. This provision was cited to argue that the petitioner was duly notified as per legal requirements.3. Court’s Evaluation: The Delhi High Court referred to precedents from the Madras High Court, specifically cases that addressed similar issues of GST notice placement on the portal:These precedents supported the petitioner’s claim that misplacement of notices could lead to genuine lapses in compliance.1. Judgment: The Delhi High Court found merit in the petitioner’s argument. The court observed that the impugned order acknowledged the taxpayer’s non-response and non-appearance, validating the petitioner’s claim of missed notice due to misplacement. Consequently, the court set aside the order dated March 13, 2024, and directed the respondent to reopen the portal for the petitioner to file a response within 30 days. Additionally, the respondent was instructed to adjudicate the Show Cause Notice within four weeks, providing the petitioner with an opportunity for a personal hearing.ConclusionThe Delhi High Court’s judgment in Ace Cardiopathy Solutions Pvt Ltd Vs Union of India underscores the importance of clear and accessible communication channels in GST compliance. The case highlights the procedural lapses that can arise from misplacing crucial notices on the GST portal, potentially leading to unwarranted demands and legal disputes. By setting aside the impugned order and allowing the petitioner to respond to the Show Cause Notice, the court reaffirmed the need for transparency and user-friendly interfaces in regulatory portals.