Bajrang Fabrics Pvt. Ltd. v. Commissioner of VAT
(2016) 7 VST-OL 111
In the High Court of Delhi
W.P. (C) 11221/2015
Before Justice Dr S. Muralidhar and Justice Vibhu Bakhru
Decided on June 02, 2016

Relevancy of the case: Can the uploading of notices on the tax authority’s website be deemed as service?

Statutes and Provisions Involved

• The Information Technology Act, 2000 (Section 12, 13)
• The Delhi Value Added Tax Act, 2004 (Section 32, 33, 59(2), 86(10), 74, 100A)
• The Central Sales Tax Act, 1956 (Section 8(4))

Relevant Facts of the Case

• The petitioner functions in the jurisdiction of the Assistant Commissioner, VAT, for ward number 70. The company is in the business of trading in all kinds of fabrics and is undertaking inter-state sales.
• The petitioner received notices on August 11, 2015, under Section 59(2) of the DVAT Act directing it to furnish various information/documents regarding inter-state sales made to a firm. The authorities uploaded the notices on the Department of Trade and Taxes website.

Prominent Arguments by the Advocates

• The petitioner’s counsel argued that serving the petitioner through electronic notices requires them to view and download the documents, which did not occur in this case.
• The respondent’s counsel argued that uploading the notices on the website deemed service to the petitioner.

Opinion of the Bench

• There are apparent glaring errors in each of the impugned orders, which appear to be system generated and issued without application of mind concerning the efficacious alternative remedy available to the petitioner.
• The court finds no legal issue in the order from January 17, 2014, which aligns with Sections 13(1) and 13(2) of the Act. Despite no explicit agreement, a valid order by the Commissioner under Rule 62(1)(vi) of the DVAT Rules binds registered dealers. Thus, the system established by the Commissioner on January 17, 2014, doesn’t conflict with Sections 12 and 13 of the Information Technology Act, 2000. Dealers under the DVAT Act seem to be adjusting to DT&T’s new electronic notice, summons, or order service by DT&T.

Final Decision

• The bench set aside each notice dated September 7, 2015, and directed the petitioner to appear before the VAT Officer on July 20, 2016.

Aditi Mangesh Sawant, an undergraduate student at NMIMS Kirit P Mehta School of Law, Mumbai, prepared this case summary during her internship with The Cyber Blog India in January/February 2024.