2026 (2) TMI 170 - HC - GST

GST assessment and service via GST portal deemed valid; writ petition dismissed for delay and laches.

Assessment order was passed after following statutory procedure and notices under DRC-01A and DRC-01 were served via the GST portal, which the court ... Delay and laches in filing writ petitions - service through GST portal constitutes valid service - denial of a proper opportunity of hearing - access to GST portal notwithstanding cancellation of registration - assessment concluded after compliance with statutory procedure - HELD THAT:- On perusal of the record, it is evident that the Assessment order was passed on 11.11.2024 after following the procedure contemplated under the Act and the petitioner was served with notice under DRC-01A, dt.30.08.2024 and show cause notice under DRC-01, dt.20.09.2024. Apart from the same, the petitioner having questioned the order of cancellation before this Court and having filed application for revocation, for the reasons best known to the petitioner did not pursue the matter thereafter. From the averments made in the affidavit, it is succinctly clear that the petitioner is aware of the initiation of proceedings of audit and inspection in respect of its business. Further, it is also apparent from the record that the 1st respondent having followed due procedure under law passed the assessment order in question. Though, the order was passed on 11.11.2024, no explanation whatsoever has been offered by the petitioner for the delay in filing the present writ petition. The only explanation offered by the petitioner is that it could not access the portal as its registration was cancelled. The said contention of the petitioner is liable to be rejected inasmuch as, though the registration of the petitioner was cancelled by order dated 15.07.2023, still the petitioner can access the portal inasmuch as, the assessment order was passed in relation to period from December, 2021 to June, 2023 and therefore, there is no restriction on the petitioner to access the portal. In such circumstances, the contention of the petitioner cannot be countenanced. In the case on hand, as already record supra, the petitioner has not offered any explanation for the delay in approaching this Court and therefore, the present writ petition cannot be entertained at this distance of time. Writ petition is dismissed. Issues: (i) Whether the writ petition challenging the assessment order can be entertained despite the inordinate delay and laches; (ii) Whether the petitioner was denied a proper opportunity of hearing because the notices and assessment order were uploaded on the GST portal and the petitioner could not access them due to cancellation of registration.Issue (i): Whether the writ petition is maintainable in view of delay and laches in approaching the Court.Analysis: The assessment order and antecedent notices were dated and uploaded on the statutory portal; an earlier direction required statutory remedies to be invoked within a specified period. The petitioner offered no satisfactory explanation for the delay of over a year in filing the present petition and did not pursue remedies after initiation of revocation proceedings. Prior departmental proceedings (inspection and audit) put the petitioner on notice of assessment action. Reliance is placed on the principle that inability to access portal or alleged non-receipt does not automatically justify condonation of long delay where statutory electronic service is prescribed.Conclusion: The writ petition is barred by delay and laches and is not maintainable.Issue (ii): Whether non-access to the GST portal due to cancellation of registration deprived the petitioner of a proper opportunity of hearing and justification to entertain the writ petition.Analysis: The assessment relates to periods during which the petitioner was a registered person and there was no absolute restriction on accessing the portal for those records. Notices including pre-show cause and show cause forms were uploaded and served in accordance with the prescribed procedure. The petitioner did not demonstrate that inability to access the portal prevented presentation of objections within the statutory time or that there was a substantive denial of opportunity warranting interference.Conclusion: The contention of denial of opportunity due to portal access is rejected; electronic service through the portal is effective for the purposes of limitation and procedure in the circumstances of this case.Final Conclusion: The petition is dismissed on grounds of inordinate delay and failure to establish denial of statutory opportunity; no interference with the assessment order is warranted.Ratio Decidendi: Where electronic service via the statutory GST portal is prescribed, unexplained long delay and failure to avail statutory remedies do not justify condoning delay or quashing assessment; inability to access the portal due to cancellation of registration does not automatically vitiate service or preclude limitation where proceedings relate to periods of registration.