2025 (8) TMI 1543 - HC - GST

Portal 'Additional Notices & Orders' uploads don't defeat remedy where precedent applies; petition allowed, s.107 GST condonation upheld

M/s Shambhu Nath Singh, Contractor Versus Additional Commissioner Grade-2 (Appeal) And Another

HC allowed the petition and quashed the impugned orders dated 3.9.2024 and 23.6.2023, holding that notices and order uploaded under the GST portal's ... Dismissal of appeal on the ground of delay - power to condone the delay under section 107 of the GST Act - presumption of deemed service of order - HELD THAT:- It is not in dispute that the proceedings were initiated and the notice dated 30.11.2022 and the order dated 23.6.2023 was uploaded under the tab 'Additional Notices & Orders' of the GST portal, instead of 'Notices & Orders' tab. The issue in hand is no more res integra and the same has already been decided by the Division Bench of this Court in Ola Fleet Technologies Private Limited [2024 (7) TMI 1543 - ALLAHABAD HIGH COURT] and Tasneef Ahmad Mirza [2024 (10) TMI 1448 - ALLAHABAD HIGH COURT] where it was held that '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. The entire disputed amount is lying in deposit with the State Government. Therefore, there is no outstanding demand.' The impugned order dated 3.9.2024 passed by the Additional Commissioner, Grade - 2 (Appeal), Judicial Division -1, State Tax Sector 2, Gorakhpur as well as the impugned order dated 23.6.2023 passed by the Assistant Commissioner, State Tax, Sector-2, Kushinagar are hereby quashed - Petition allowed. ISSUES PRESENTED AND CONSIDERED 1. Whether an order/notice uploaded on the GST portal under the tab 'Additional Notices & Orders' (as distinct from 'Notices & Orders') attracts the legal presumption of deemed service so as to commence the period of limitation for filing an appeal. 2. Whether the appellate authority under section 107 (as applied by the authorities in the impugned orders) has power to condone delay in preferring an appeal when service is effected by uploading on the GST portal in a manner contested by the assessee. 3. Appropriate relief/remedial course where an assessing authority's order is found to have been uploaded in a portal location that prevented effective notice to the taxpayer. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Deemed service by upload in 'Additional Notices & Orders' tab: Legal framework Legal framework: Service of notices/orders under the GST regime is effected by electronic communication and the GST portal; statutory/permissible presumptions of service arise where the departmental procedure for uploading and notifying orders is complied with, thereby starting limitation clocks for appeals. Precedent treatment: The Court refers to recent Division Bench and single-judge decisions of this High Court (cited in the judgment) which have addressed whether uploading in non-standard or alternative tabs results in deemed service; those decisions are treated as directly applicable and controlling. Interpretation and reasoning: The Court found as a fact that the notice dated 30.11.2022 and the order dated 23.6.2023 were uploaded under the GST portal's 'Additional Notices & Orders' tab rather than the 'Notices & Orders' tab. Relying on the law settled by the earlier decisions of this Court, the Court held that such uploading in the alternative tab did not attract the presumption of deemed service so as to commence the period of limitation for filing an appeal against the order. Ratio vs. Obiter: Ratio - where departmental practice results in orders being uploaded in an alternative/non-prescribed portal location which prevents effective notice to the assessee, the presumption of deemed service is not attracted and the limitation period does not accrue from that upload. Obiter - procedural observations on good practice and the importance of clear portal practices (implicit in directions) are ancillary. Conclusion: The Court concluded that the petitioner could not be held to have been served by upload to the 'Additional Notices & Orders' tab and therefore the period of limitation did not begin to run from the date of such upload. Issue 2 - Appellate authority's power to condone delay under section 107 in circumstances of contested portal service Legal framework: Section 107 (as applied by the authorities in the impugned order) governs appeals from orders under the GST statutory framework; appellate jurisdiction includes consideration of delay and condonation subject to the statutory scheme and applicable rules/procedures. Precedent treatment: The Court relies on binding precedents from this High Court which have considered the scope of the appellate authority's power when service is contested because of defective or non-standard portal uploads; those precedents are followed. Interpretation and reasoning: The impugned appellate order dismissed the appeal solely on the ground of delay, observing an absence of power to condone delay under section 107 (as recorded). Having held that the uploaded order did not effect deemed service, the Court treated the plea of delay as dependent on the correctness of service. Given the factual conclusion that effective service did not occur by the contested upload (Issue 1), dismissal on delay without adjudication on the merits was inappropriate. The Court therefore accepted that the appeal could not be summarily rejected for delay in the factual matrix presented. Ratio vs. Obiter: Ratio - an appellate authority must not rigidly reject an appeal as barred by limitation where service is contested on the ground of defective portal uploading; the question of delay/condonation must be examined in light of effective service. Obiter - the precise contours of the appellate authority's discretionary power under section 107 in every permutation of portal-service facts are matters for detailed consideration on a case-by-case basis. Conclusion: The appellate authority's dismissal on the ground of delay was set aside because deemed service was not proved by upload to the alternative tab; the authority's approach could not stand without fresh adjudication consistent with the correct view on service and limitation. Issue 3 - Appropriate remedy and directions where service was defective by portal upload Legal framework: Courts may quash administrative orders and remit matters for fresh decision where procedural defects prevent a party from receiving effective notice and thus from availing remedies, subject to directions to secure expeditious and fair adjudication. Precedent treatment: The Court applied the procedure followed in earlier decisions of this Court, treating them as controlling precedent for remedy and directions in similar portal-service cases. Interpretation and reasoning: In light of the ruling that the contested upload did not constitute effective service and that the appellate dismissal on delay was unsustainable, the Court quashed both the original adjudication order and the appellate dismissal. Rather than deciding liability on merits, the Court remitted the matter for fresh adjudication so that procedural fairness (an opportunity to reply and to receive a proper notice) could be afforded. The Court prescribed specific timelines and procedural steps to ensure effective hearing - treating the prior order as a final notice for purposes of reply, directing the assessing officer to issue a fresh notice in the prescribed manner with at least fifteen clear days' notice, requiring the assessee's written reply within two weeks, and mandating a reasoned/speaking order within one month of service of fresh notice. Ratio vs. Obiter: Ratio - where defective portal uploading prevents effective notice, the appropriate remedy is to quash the impugned orders and remit for fresh adjudication with directions to effect service in the prescribed manner and to afford opportunity of hearing within fixed timelines. Obiter - the specific timeframes imposed are pragmatic directions tailored to the facts of the case rather than a universal rule for all cases. Conclusion: The Court quashed the impugned orders and remanded the matter to the authority for fresh adjudication, directing issuance of a fresh notice in the prescribed manner, providing opportunity for written reply, and requiring a reasoned order within a specified short period. Cross-references Issues 1 and 2 are interlinked: the treatment of delay and the appellate authority's power (Issue 2) was considered only after determining that the contested upload did not amount to deemed service (Issue 1). Issue 3 follows logically from Issues 1 and 2 as the remedial consequence of the findings on service and delay.