M/S Kansalt And Trade vs. State Of U.P. And 2 Others

Facts

The petitioner, M/S Kansalt And Trade, filed a writ petition challenging an order dated August 20, 2022, passed by the Assessing Authority. The petitioner contended that they were not granted an adequate opportunity of hearing. Specifically, they argued that neither an email regarding the show cause notice was received, nor was the notice uploaded on the proper GST portal. Instead, it was found under the "additional notices and orders" tab. The petitioner relied on a previous judgment by a Division Bench of the same High Court in Ola Fleet Technologies Limited v. State of U.P. and 2 Others, which held that notices not appearing on the main GST portal but under the "additional notices and orders" tab are not considered valid notices.

Held

The Court agreed with the petitioner's submission and the precedent laid down in Ola Fleet Technologies Limited v. State of U.P. and 2 Others. The Court found consensus ad idem with the coordinate bench's judgment. Consequently, the impugned order dated August 20, 2022, was quashed and set aside. The Court directed the concerned authority to issue a fresh show cause notice to the petitioner within two weeks from the date of the order and to proceed with the matter in accordance with the law. The ratio decidendi is that a notice not uploaded on the primary GST portal, but relegated to the "additional notices and orders" tab, does not constitute proper service or grant of adequate opportunity of hearing, thereby violating principles of natural justice.

Key Issues

1. Whether an order passed by the Assessing Authority without granting an adequate opportunity of hearing to the petitioner is valid, particularly when the show cause notice was not uploaded on the main GST portal but was placed under the "additional notices and orders" tab? (Question of law, turning on principles of natural justice and procedural fairness under GST law). Contentions: Petitioner: Argued that the order is invalid because no proper opportunity of hearing was provided. They contended that the show cause notice was not properly served as it was not uploaded on the main GST portal, citing the precedent set in Ola Fleet Technologies Limited v. State of U.P. and 2 Others. They asserted that a notice placed under the "additional notices and orders" tab does not constitute valid notice. Respondent (State of U.P. and 2 Others): The judgment records no specific arguments from the respondent's side.