Legal Notice Invalidated: Procedural Defect in CGST Show Cause Communication Leads to Order Reversal

HC set aside an order under CGST Act due to improper communication of a Show Cause Notice. The notice was uploaded on a web portal's 'Additional Notices' tab without direct communication. The court directed respondents to allow the petitioner to file a response within four weeks and re-adjudicate the matter after a personal hearing, ensuring procedural fairness without examining the case merits.

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Issues Involved: Impugned order passed u/s 73 of the Central Goods and Services Tax Act, 2017 due to failure to respond to Show Cause Notice uploaded on the web portal under 'Additional Notices' tab without direct communication.

Issue 1: Lack of Communication Regarding Show Cause Notice

The petitioner challenged the order dated 04.12.2023, which created a demand against them u/s 73 of the CGST Act, 2017, based on a Show Cause Notice dated 23.09.2023. The petitioner claimed they were unaware of the proceedings as the notice was only uploaded on the web portal under 'Additional Notices' without any direct communication. The petitioner argued that had the notice been placed correctly, they would have responded and participated in the proceedings.

Issue 2: Judicial Precedents and Portal Design

Reference was made to judgments from the Madras High Court highlighting similar issues where notices were placed under 'Additional Notices' instead of 'View Notices and Orders'. The petitioner emphasized the need for proper placement of notices for effective communication. Another judgment mentioned the redesign of the portal to consolidate 'View Notices' and 'View Additional Notices' under one heading, addressing the confusion caused by the previous design.

Issue 3: Setting Aside Impugned Order

The High Court set aside the impugned order of 04.12.2023, noting that the petitioner's failure to respond was the sole reason for the order. The court directed the respondents to allow the petitioner to file a response to the Show Cause Notice within four weeks and to re-adjudicate the matter after a personal hearing. The court clarified that it did not delve into the merits of the case, preserving the rights and contentions of both parties.

In conclusion, the High Court's judgment addressed the lack of proper communication of the Show Cause Notice, referencing similar cases and emphasizing the importance of correct placement on the web portal. The impugned order was set aside, granting the petitioner an opportunity to respond and have the matter re-adjudicated in accordance with the law. The court's decision focused on procedural fairness and ensuring the petitioner's right to be heard in the proceedings.

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