HC: SCN quashed for non-service within statutory three-month window as per sec. 73(2) technical glitch plea rejected {C.H. Robinson Worldwide Freight India (P.) Ltd. vs. Additional Commissioner, CGST-Delhi-South [2025] 180 taxmann.com 300 (Delhi)}
Facts
- The CGST department issued a Show Cause Notice dated 31 May 2024 to C.H. Robinson Worldwide Freight India Pvt. Ltd., alleging wrongful availment of Input Tax Credit for FY 2019–20, demanding about Rs 11.85 crore.
- The SCN, though dated 31 May, was actually served (or reissued) only on 12 August 2024.
- The department argued that the delay was due to a “technical glitch” in the GST portal: the DRC-01 form could not be issued on time, so it was reissued in August.
- Also, the notice was allegedly dispatched to an outdated address, even though the taxpayer had earlier notified a change of address.
Issue
- Whether the SCN was barred by limitation under Section 73(2) of the CGST Act, because it was not issued (or served) at least three months before the final date for passing the adjudication order (as required by law).
- Whether the “technical glitch” explanation by the department (for delay) is legally tenable.
- Whether service of SCN to an old address (despite notified change) invalidates the notice.
Held
- The Delhi High Court held that the three-month gap under Section 73(2) is mandatory, not directory.
- The Court rejected the department’s “technical glitch” defence. It said that administrative or portal issues cannot override a clear statutory timeline.
- Because the SCN was not served in the required time and was sent to an outdated address, the Court quashed the SCN (31 May 2024) and all consequential proceedings.
