Mere uploading of notices on GST portal not a valid mode of service

The Hon’ble Patna High Court in the case of M/s Binod Traders Versus The Union of India, The Secretary, The State of Bihar, The Commissioner of State Tax cum Secretary, The Additional Commissioner, The Deputy Commissioner of State Tax, The Joint Commissioner, State Tax and The Assistant Commissioner, State Tax, Siwan Circle, Siwan - 2025 (6) TMI 251 - PATNA HIGH COURT held that uploading a summary show cause notice on the GST portal alone does not amount to valid service under Section 169 of the Bihar GST Act and set aside the ex parte assessment order passed in violation of Section 75(4) for lack of opportunity of hearing.

Facts:

Binod Traders (“the Petitioner”), a registered taxpayer under the Bihar Goods and Services Tax Act, 2017(“the BGST Act”), challenged an ex parte Assessment Order dated September 20, 2023 issued under Section 73 by the Joint Commissioner, State Tax, Siwan Circle (“the Respondent 7”) for the financial year 2017-2018.

The Respondents uploaded a show cause notice (“the SCN”) dated August 11, 2023 on the GST portal. However, the Petitioner contended that no notice was served to them as prescribed under Section 169 except uploading the SCN on the GST portal, and therefore, they could not file a reply.

Pursuant to the assessment order, a demand was raised in Form DRC-07 on September 20, 2023 by the Respondents. The Petitioner’s belated appeal against this order was dismissed by the Additional Commissioner (Appeals) on May 08, 2024. The Petitioner thereafter approached the Hon’ble High Court seeking quashing of both the ex parte assessment order and the appellate order, for the reasons of  violation of natural justice.

Issue:

Whether mere uploading of a summary show cause notice on the GST portal constitutes valid service under Section 169 of the BGST Act?

Held:

The Hon’ble Patna High Court in M/s Binod Traders Versus The Union of India, The Secretary, The State of Bihar, The Commissioner of State Tax cum Secretary, The Additional Commissioner, The Deputy Commissioner of State Tax, The Joint Commissioner, State Tax and The Assistant Commissioner, State Tax, Siwan Circle, Siwan - 2025 (6) TMI 251 - PATNA HIGH COURTheld as under:

• Observed that, the show cause notice dated August 11, 2023 was only uploaded on the portal and not served through other prescribed modes under Section 169.
• Held that, mere uploading in the GST portal was not a sufficient mode of service and therefore due to lack of valid service, the Petitioner could not respond or participate in the adjudication, and the ex parte order was passed in violation of Section 75(4) of the Bihar Goods and Services Tax, 2017.
• Held that, both the assessment orders dated September 20, 2023 and the appellate order dated May 08, 2024 to be set aside, for non-compliance with procedural requirements under the BGST Act.
• Further directed the authority to issue a fresh summary show cause notice, grant opportunity of reply and hearing, and pass a reasoned speaking order within six months.

Our Comments:

This order introduces interpretational ambiguity regarding Section 169 of the Central Goods and Services Tax Act, 2017(“the CGST Act”) that governs “Service of notice in certain circumstances”.  The section in clauses S.169(1)(a) – (e), provides multiple alternative methods for service, including portal upload, without ranking them hierarchically. S.169(1)(d) provides for “by making it available on the common portal” also as a valid means of service. However, this division bench ruling has held that the uploading of the SCN in the portal alone does not amount to sufficient service, and had insisted on additional modes beyond portal upload. This creates uncertainty for both taxpayers and tax authorities. It also raises concerns regarding administrative efficacy where notices are routinely served via the GST portal. A conclusive clarification, either through legislative amendment or a judicial pronouncement, is essential to harmonize procedural requirements with digital infrastructure realities under GST.

Relevant Provisions:

Section 169 – Service of notice in certain circumstances

“(1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely:—

(a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on behalf of the taxable person or to a person regularly employed by him in connection with the business, or to any adult member of family residing with the taxable person; or

(b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at his last known place of business or residence; or

(c) by sending a communication to his e-mail address provided at the time of registration or as amended from time to time; or

(d) by making it available on the common portal; or

(e) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or

(f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board of the office of the concerned officer or authority who or which passed such decision or order or issued such summons or notice.”

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