2025 (8) TMI 473 - HC - GST

Writ petition allowed for quashing order due to natural justice violation under GST rules, fresh notice required

Nec Electronics Corporation Versus State Of U.P. And 3 Others

The HC allowed the writ petition, quashing the impugned order dated April 19, 2024, due to violation of natural justice principles as notices were ... Violation of principles of natural justice - notices issued u/s 73 of the Act, were uploaded on 'Additional Notices and Orders' Tab of the G.S.T. Portal - petitioner being unaware of issuance of the notice as well as passing of the order, could neither appear before the authority nor question the validity of the impugned order within the period of limitation - HELD THAT:- In the case of Ola Fleet Technologies Pvt. Ltd [2024 (7) TMI 1543 - ALLAHABAD HIGH COURT] a co- ordinate Bench of this Court inter alia observed that 'it does appear that the petitioner is entitled to a benefit of doubt. No material exist to reject the contention being advanced that the impugned order was not reflecting under the tab 'view notices and orders'. On merits, as noted in the earlier orders an other dispute exists whether all replies and annexures to the replies as filed by the assessee were displayed to the assessing officer and whether those have been considered. We find, no useful purpose may be served for keeping this petition pending or calling for a counter affidavit or even relegating the petitioner to the available statutory remedy.' In view of the submissions made and the judgement in the case of Ola Fleet Technologies Pvt. Ltd the writ petition filed by the petitioner is allowed. The order impugned dated April 19, 2024 is quashed and set aside - The Assessing Officer may issue a fresh at least 15 days clear notice to the petitioner in the manner prescribed in accordance with law and based on the said notice, further proceedings may take place. ISSUES: Whether a notice issued under Section 73 of the Goods and Service Tax Act, 2017, is validly communicated if it is uploaded on the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab on the GST portal.Whether non-visibility of the notice under the correct tab on the GST portal affects the assessee's ability to respond and challenge the order within the limitation period.Whether the assessing officer bears responsibility for the manner of uploading notices on the GST portal.Appropriate remedy and procedural steps when a notice is not properly communicated through the prescribed portal mechanism. RULINGS / HOLDINGS: The Court held that notices uploaded under the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab do not constitute proper communication under Section 73 of the GST Act, 2017, as the assessee may remain unaware of the notice and be unable to respond within the limitation period.The Court found that the petitioner is entitled to the 'benefit of doubt' where the impugned order was not reflected under the 'view notices and orders' tab, thereby impeding the petitioner's ability to seek appropriate remedy timely.The assessing officer is not responsible for the technical manner in which notices are uploaded on the GST portal, as the portal's design and maintenance fall under the GST Network, a separate entity.The impugned order dated April 19, 2024, was quashed and set aside, and the assessing officer was directed to issue a fresh notice with at least fifteen days' clear notice in the manner prescribed by law, allowing the petitioner to respond and participate in further proceedings. RATIONALE: The Court applied the statutory framework of Section 73 of the Goods and Service Tax Act, 2017, which requires proper issuance and communication of demand notices to the assessee.The Court relied on precedent from a co-ordinate Bench in Ola Fleet Technologies Pvt. Ltd., which addressed the issue of improper uploading of notices on the GST portal and emphasized the necessity of proper communication for the exercise of statutory rights.The Court recognized a procedural deficiency caused by the GST Network's portal design, which is beyond the control of the assessing officer, thereby excusing the officer from blame but not excusing the failure of proper communication to the assessee.The decision reflects a doctrinal emphasis on procedural fairness and the right to be heard, mandating that notices must be accessible under the prescribed portal tab to ensure effective communication and compliance with limitation periods.