Ensuring Credibility in Online Notices & Orders: Allahabad HC Stresses Rule of Natural Justice

The Allahabad High Court emphasized the importance of ensuring credibility in the system offered by revenue authorities in the online submission of notices and orders through the GST portal. The Court highlighted the necessity of service of notice or order to meet the minimum requirements of the rule of natural justice. The assessing authority was directed to file a personal affidavit within a week to establish when the order was uploaded on the portal to avoid unnecessary litigation. Further directions to the Goods and Services Tax Network were deferred pending the submission of the assessing authority's affidavit. The case was scheduled for further hearing on 21.09.2021.

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Issues: Service of notice under GST Act, Rule of natural justice, Credibility of revenue authorities' system.

In this judgment by the Allahabad High Court, the petitioner sought to challenge a document received through the GST portal, Form GST DRC-07, dated 20.07.2021, which lacked reasons for the demand created. The petitioner claimed non-service of this document. The respondent, however, produced another Form GST DRC-07 with reasons appended to written instructions. The Court emphasized the importance of ensuring the credibility of the system offered by revenue authorities, especially in the online submission of notices and orders through the GST portal. The Court highlighted the necessity of service of notice or order to meet the minimum requirements of the rule of natural justice. The Court directed the assessing authority to file a personal affidavit within a week to establish when the order was uploaded on the portal, emphasizing the need for complete credibility in the system to avoid unnecessary litigation. The Court deferred issuing any direction to the Goods and Services Tax Network pending the submission of the assessing authority's affidavit. The case was scheduled for further hearing on 21.09.2021.

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