Case: M/s Sharma Transport Agency vs. Deputy Commissioner, State Tax, Asansol Charge and Ors.Court: Calcutta High Court Dated: 24-09-2026
The notice was hidden away in a secondary tab, and the taxpayer completely missed it. As a result, a recovery notice arrived out of the blue three years later.
The Show Cause Notice (SCN) was issued on 31 December 2023 but was uploaded strictly under the “Additional Notices and Orders” tab. Because of this, the taxpayer remained completely unaware.
Consequently, an ex-parte order was passed on 26 April 2024, followed by a recovery notice served on 14 August 2026.
The Calcutta High Court quashed all three actions: the SCN, the adjudication order, and the recovery notice. While the State argued that the taxpayer was given an opportunity to be heard, the Court firmly ruled that hiding the notice in a hidden tab did not constitute effective service of notice.
For two whole years, the citizen had no idea an order existed against him, and by the third year, a recovery demand was slammed on him. The Court remarked that this was not an oversight, but a systemic pattern.
Key Details of the Ruling:
a) Show Cause Notice (SCN) Quashed: Dated 31-12-2023
b) Adjudication Order Quashed: Dated 26-04-2024
c) Recovery Notice Quashed: Dated 14-08-2026
Court Verdict & Court Directions:
a) Held: Uploading a notice exclusively under the “Additional Notices” tab does not equate to effective service of notice. Therefore, the ex-parte order and subsequent recovery proceedings are set aside.
b) Fresh SCN: The department must issue a fresh SCN within two weeks.
c) Taxpayer Reply: The taxpayer must file a reply within two weeks of receiving the fresh SCN.
d) Final Order: The authorities must pass a reasoned, speaking order within twelve weeks of receiving the reply