GST Demand Order Overturned: Procedural Flaws Invalidate Notice, Petitioner Granted Opportunity to Respond Within Two Weeks

HC set aside an ex-parte demand order under GST Act due to procedural irregularities in notice placement. The court found notice placement on the portal inadequate, directing respondents to allow petitioner to file response within two weeks and re-adjudicate the Show Cause Notice. All substantive rights and legal contentions were preserved, with no examination of case merits.

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Issues involved: Impugned order passed u/s 73 of the Central Goods and Services Tax Act, 2017 based on a Show Cause Notice dated 25.09.2023; Allegation of lack of communication of the notice to the petitioner; Interpretation of placement of notices on the GST portal; Failure of the petitioner to respond leading to an ex-parte demand.

Judgment Details:

1. The petitioner challenged the order dated 07.12.2023 raising a demand of Rs. 5,83,18,566.00 u/s 73 of the Act. The petitioner claimed unawareness of the proceedings due to the Show Cause Notice being uploaded under 'Additional Notices' without direct communication. The petitioner cited a similar case from the High Court of Madras regarding notice placement on the portal.

2. The petitioner argued that had the notice been correctly placed, they would have responded. The issue of notice placement was emphasized through judgments from the Madras High Court, highlighting the challenges faced due to the web portal's design complexity.

3. Referring to another Madras High Court judgment, it was noted that the portal had been re-designed to address the issue of notice placement. The petitioner contended that the lack of notice visibility led to their failure to respond to the Show Cause Notice.

4. The impugned order recorded the petitioner's non-response, leading to an ex-parte demand creation. The Court found that the petitioner should be given an opportunity to respond to the Show Cause Notice for a fair adjudication, setting aside the impugned order dated 07.12.2023.

5. The Court directed the respondent to allow the petitioner to file a response within two weeks and re-adjudicate the Show Cause Notice, providing a fresh order within the prescribed period. The Court clarified that it did not delve into the merits of the case, leaving all rights and contentions reserved.

6. The challenge to Notification No. 9 of 2023 regarding the initial time extension was left open, and the petition was disposed of accordingly.

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