2024 (7) TMI 530 - HC - GST

Tax Notice Dispute Resolved: Speed Post Deemed Substantial Compliance, Appeal Rights Preserved Under GST Regulations

HC addressed a tax dispute involving non-uploading of notices on the common portal under GST Act. The court found substantial compliance through speed ... Requirement to upload show-cause notice and adjudication order on common portal under Rule 142 - modes of service under Section 169 - substantial compliance - service by registered/speed post - right to statutory appeal - personal hearing - prejudice requirement for vitiationRequirement to upload show-cause notice and adjudication order on common portal under Rule 142 - modes of service under Section 169 - substantial compliance - prejudice requirement for vitiation - Effect of non-uploading of the show-cause notice on the validity of the adjudication proceedings - HELD THAT: - The Court noted that Rule 142(1) read with Rule 142(5) contemplates uploading the show-cause notice (Form DRC-01) and the adjudication order (Form DRC-07) on the common portal. However, Section 169 provides alternative modes of service, including making the notice available on the common portal and service by registered/speed post. Where the show-cause notice was duly served by speed post, the petitioner filed a reply and availed personal hearing, the Court found this constitutes substantial compliance with the statutory modes of service. In those circumstances mere non-uploading on the portal does not automatically vitiate the proceedings unless prejudice to the assessee is shown. The petitioner did not identify any prejudice caused by non-uploading of the show-cause notice; accordingly the notice and subsequent proceedings were not set aside on that ground. [Paras 9, 10]Non-uploading of the show-cause notice did not vitiate the proceedings where the notice was served by speed post, the petitioner replied and had a personal hearing, and no prejudice was shown.Requirement to upload show-cause notice and adjudication order on common portal under Rule 142 - right to statutory appeal - personal hearing - Consequences of non-uploading of the adjudication order and entitlement to pursue statutory appeal - HELD THAT: - The Court recorded the respondents' statement and an e-mail communication that the adjudication order in Form DRC-07 dated 29th December, 2023 was uploaded on the common portal on 20th May, 2024. Observing that without such disclosure the petitioner could not have challenged the order, the Court directed that if the order has not yet been uploaded it must be uploaded within seven days. The Court permitted the petitioner to file an appeal within three months from the date of this judgment or within three months from the date of uploading on the portal, whichever is later, upon depositing the requisite fees. The Court explicitly refrained from adjudicating the merits and left the appellate authority to decide all points including limitation after giving opportunity of personal hearing. [Paras 7, 10, 11, 12]Respondents to upload the adjudication order within seven days if not already uploaded; petitioner permitted to prefer an appeal within three months from this judgment or from the date of upload, and the appellate authority to decide the appeal on merits (including limitation) after hearing.Final Conclusion: Writ petition disposed: non-uploading of the show-cause notice did not vitiate proceedings in view of service by speed post, reply and personal hearing; respondents directed to ensure upload of the adjudication order if not done and petitioner granted time-limited right to prefer appeal to be decided on merits by the appellate authority. Issues involved:Challenging order under Section 73 (9) of the West Bengal/Central Goods and Services Tax Act, 2017 for the tax period July 2017 to March 2018. Non-uploading of show cause cum demand notice and adjudication order on the common portal. Right to challenge adjudication order by filing an appeal. Compliance with statutory provisions for serving notices.Analysis:Issue 1: Challenging the order under Section 73 (9) of the ActThe petitioner filed a writ petition challenging the order dated 29th December, 2023, passed under Section 73 (9) of the West Bengal/Central Goods and Services Tax Act, 2017 for the tax period July 2017 to March 2018.Issue 2: Non-uploading of Notices on the Common PortalThe petitioner contended that the show cause cum demand notice and the adjudication order were not uploaded on the common portal, which is required as per the statutory provisions. The absence of the show-cause notice on the portal was highlighted, leading to a request to set aside both the show cause notice and the adjudication order.Issue 3: Right to Challenge by Filing an AppealThe petitioner argued that the failure to upload the adjudication order on the common portal deprived them of the right to challenge the order by filing an appeal. Emphasis was placed on the statutory right to appeal, which should not be compromised due to procedural lapses.Issue 4: Compliance with Statutory Notice Serving ProvisionsThe respondents justified the non-uploading of the show cause notice on the common portal by stating that it was duly served on the petitioner through speed post, and the petitioner had responded to it. They argued that the failure to upload the notice did not invalidate the proceedings since the petitioner was made aware of the notice and had an opportunity to respond.Judgment and DirectionThe Hon'ble Court acknowledged the importance of complying with statutory provisions regarding the uploading of notices on the common portal. However, it noted that substantial compliance was achieved as the petitioner was served the notice through speed post and had responded to it. The Court directed that if the order dated 29th December, 2023, was not uploaded on the common portal, it should be done within seven days. The petitioner was granted the right to pursue its statutory remedy by filing an appeal within three months of the judgment or the date of uploading the order on the portal, whichever is later.ConclusionThe writ petition was disposed of without costs, allowing the petitioner to appeal the order if uploaded on the common portal within the specified time frame. The Court clarified that it did not delve into the merits of the case, leaving it to the appellate authority to decide all points raised, including any issues of limitation.This detailed analysis covers the issues raised in the judgment, providing a comprehensive understanding of the legal proceedings and the Court's decision.