Ex Parte Assessment Order Set Aside for Natural Justice Violation under GST Rules Due to Notice Service Glitch

The HC set aside the ex parte assessment order dated November 2, 2023, and the appellate order dated July 17, 2023, due to violation of natural justice principles. The petitioner was not served show-cause notices or orders properly, as these were not uploaded under the designated "NOTICES/ORDERS" tab on the GST portal but only under "Additional Notices or Orders," a technical glitch acknowledged by the Revenue and GST Network. The petitioner acted under a bona fide belief that no notice or order was issued. Consequently, the petitioner cannot be held liable for the assessment, and the petition was disposed of accordingly.

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ISSUES:

Whether the ex-parte adjudication order under Section 73 of the West Bengal GST Act, 2017 can be sustained when the relevant notices and orders were not uploaded under the designated "NOTICES/ORDERS" tab on the GST common portal but under the "ADDITIONAL NOTICES/ORDERS" tab.Whether the petitioner's failure to discover the ex-parte order due to the improper tabulation of notices on the GST portal justifies setting aside the order despite the delay in filing the appeal beyond the prescribed limitation period under Section 107(1) and extended limitation under Section 107(4) of the GST Act, 2017.The responsibility and liability of the Revenue and GST Network (GSTN) regarding the technical glitches and the correct uploading of notices and orders on the GST common portal.Whether the limitation period for appeal should be reckoned from the date of the fresh notice if the original order is set aside due to procedural irregularities in notice issuance.

RULINGS / HOLDINGS:

The ex-parte adjudication order dated November 2, 2023, cannot be sustained as the petitioner was under a bona fide impression that no notice or assessment order was issued against him since the notices were not uploaded under the "NOTICES/ORDERS" tab but under the "ADDITIONAL NOTICES/ORDERS" tab, which the petitioner's accountant did not check.The delay in filing the appeal beyond the limitation period under Section 107(1) and Section 107(4) is excused due to the improper tabulation of notices and the petitioner's prompt filing of the appeal within 72 hours of discovery of the ex-parte order.The Revenue admits and the court finds that the GSTN is aware of the technical glitches causing notices/orders to appear only under the "ADDITIONAL NOTICES/ORDERS" tab on the taxpayer's interface, which is contrary to the GST website manual and FAQs specifying the "NOTICES/ORDERS" tab as the proper location.The assessment order dated November 2, 2023, and the appellate order dated July 17, 2023, are set aside, and the Revenue is permitted to issue a fresh notice for adjudication within one month, with the limitation period commencing from the date of such fresh notice.

RATIONALE:

The court applied the provisions of the West Bengal GST Act, 2017, specifically Section 73 (adjudication), Section 107(1) (appeal limitation), and Section 107(4) (extended limitation), alongside the procedural requirements for notice issuance under the GST regime.The court emphasized the importance of proper notice to ensure the right to be heard and participation in adjudication proceedings, holding that failure to upload notices under the correct tab on the GST common portal constitutes a procedural irregularity that vitiates the ex-parte order.The decision reflects a recognition of systemic and technical issues within the GSTN portal affecting taxpayer rights and imposes a duty on the Revenue and GSTN to correct such glitches to prevent future injustice.The court's order to notify the Special Commissioner, State Revenue, North Bengal, to bring the issue to GSTN's attention indicates a doctrinal approach favoring procedural fairness and administrative accountability in tax proceedings.

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