Uploading Show Cause Notice on 'Additional Notices' Tab Ineffective, Delhi High Court Reiterates

The Delhi High Court, on 21 January 2026, remanded a matter back to the Proper Officer, noting that uploading a show cause notice under the 'Additional Notices' tab was not a valid service.

A Division Bench comprising Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul set aside the demand order, allowing the petitioner to file a reply to the show cause notice and avail a personal hearing. The Bench noted:

“we are of the view that the petitioner has made out a case for remand for the following reasons:

(a) That the show cause notice and the reminders were uploaded on “Additional Notice” tab.

(b) The fact remains that the said tab was not open for operation for the petitioner and as such, there is a reason to believe that the petitioner was not served with the show cause notice as well as the reminder thereto.”

The case arose from a mismatch in GST returns, which led the Department to issue a show cause notice creating a tax demand of Rs. 10,91,910 against the taxpayer. The notice alleged excess Input Tax Credit (ITC) and non-reversal of ITC on exempt supplies, including ITC claims on dealers whose registrations had been cancelled.

As the notice was uploaded under the 'Additional Notices and Orders' tab, the petitioner remained unaware of its issuance. The Sales Tax Officer consequently passed an order on the grounds of non-prosecution, prompting the appeal.

The taxpayer argued that the order was passed ex-parte and he was denied an opportunity to be heard. The Department contended that the petitioner's Chartered Accountant failed to act and highlighted the alternative remedy of appeal.

Reiterating the principles in Neelgiri Machinery, followed in Etemad Cargo, the High Court remanded the case, holding that a personal hearing is mandatory where service is ineffective.

Accordingly, the Court allowed the petition and directed the Proper Officer to pass a reasoned order after granting the petitioner a personal hearing.

For Petitioner: Advocates Priyanka Rathi, Ashwini Chandrasekaran