GST Portal Upload Alone Is Not Valid Service: Delhi High Court Grants Relief in SCN and Demand Order Disputes

Background and Overview

The Delhi High Court recently disposed of two writ petitions — W.P.(C) 10640/2025 and W.P.(C) 10724/2025 — through a common order, addressing a significant procedural issue in GST adjudication: whether mere uploading of a Show Cause Notice (SCN) or Demand Order on the GST Common Portal constitutes valid service upon the assessee.

Both petitions arose from challenges to Notification No. 40/2021-Central Tax dated 29.12.2021 and Notification No. 40/2021-State Tax (Delhi) dated 09.06.2022, along with consequential SCNs and Demand Orders issued under Section 73 of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017 for Financial Year 2020-21.

The Court's ruling carries wide-ranging implications for GST assessees who may have missed SCNs or Demand Orders because they were served exclusively through portal uploads — without any independent confirmation of receipt.

Challenge to the Notifications

The assessees in both petitions had initially challenged Notification No. 40/2021-Central Tax dated 29.12.2021 and Notification No. 40/2021-State Tax (Delhi) dated 09.06.2022 on the ground that these notifications were ultra vires Section 164 of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017.

The consequential SCNs and Demand Orders issued under Section 73 of both enactments for Financial Year 2020-21 were also challenged as being barred by limitation.

However, at the hearing stage, the assessees' counsel did not press the challenge to the notifications. Instead, relief was sought in terms of the Punjab and Haryana High Court's ruling in Luxmi Traders v. Union Territory of Chandigarh and Others, CWP-27139-2025 (O&M), decided on 21.07.2026.

Note: The Delhi High Court expressly left the validity of the notifications undecided and did not render any opinion on the merits of the underlying tax demands.

The Governing Precedent: Luxmi Traders v. Union Territory of Chandigarh

The foundation of the Delhi High Court's order rests on the principles laid down by the Division Bench of the Punjab and Haryana High Court in Luxmi Traders v. Union Territory of Chandigarh and Others, CWP-27139-2025 (O&M), decided on 21.07.2026.

Key Conclusions from Paragraph 60 of Luxmi Traders (supra)

The Division Bench in Luxmi Traders recorded the following binding conclusions: