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

The HC allowed the writ petition, quashing the impugned order dated April 19, 2024, due to violation of natural justice principles as notices were uploaded on the GST portal without proper communication to the petitioner. The court found merit in the petitioner's contention that the order was not visible under the correct tab, preventing participation in proceedings. The matter was remanded to the Assessing Officer to issue a fresh notice with at least 15 days' clear time, following the prescribed legal procedure, and to proceed thereafter.

---

---

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.

---