Improper Service of Show Cause Notices Through GST Portal Violates Natural Justice Under Section 169

The HC set aside GST assessment orders due to improper service of Show Cause Notices through the web portal, finding violations of natural justice principles. While Section 169 of GST Acts provides various service methods, the court determined proper confirmation of electronic notices is essential. The HC directed authorities to serve notices via registered post or courier until technical issues are resolved, and remanded cases for fresh assessment. Petitioners were granted opportunity to respond to notices, with authorities required to pass new orders within 45 days.

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Issues:
Challenging assessment orders and recovery proceedings based on lack of proper service of Show Cause Notices and violation of principles of natural justice.

Analysis:
The petitioners challenged assessment orders and recovery proceedings due to alleged lack of proper service of Show Cause Notices or adequate opportunity to respond. The counsel for the petitioners argued that the impugned orders were passed in violation of principles of natural justice. On the contrary, the Government Advocate for the respondents contended that the notices were uploaded on the State Government's web portal and auto-populated in the GST web portal maintained by the Central Government, making them accessible to the petitioners.

The Government Advocate further argued that the impugned orders could be challenged before the appellate authority under Section 107 of the respective GST enactments. Reference was made to Section 169 of the GST Acts, highlighting the various methods of service of notices deemed sufficient. The counsel for the respondents cited a decision of the Kerala High Court in support of their arguments and sought dismissal of the Writ Petitions on these grounds.

Upon hearing both parties and examining the records, the court noted that while Section 169 of the GST Acts provides for different methods of communication, proper confirmation of the service of notices and orders uploaded on the State Government's web portal is essential for compliance. The court acknowledged technical issues in the GST web portal and directed the respondents to continue serving notices through registered post or courier until technical problems are resolved.

The court emphasized the need for proper service of notices and ordered the remittance of cases back to the respondents for fresh assessment orders. The petitioners were instructed to respond to the Show Cause Notices, which were to be treated as supplementary notices. The court set a deadline for the respondents to pass appropriate orders within forty-five days from the date of the order, considering the Assessment Year in question.

In conclusion, the court set aside the impugned assessment orders, emphasizing the importance of proper service of notices and adherence to legal procedures. The judgment aimed to ensure compliance with principles of natural justice and directed the respondents to reevaluate the cases in accordance with the law.

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