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 27.06.2022 passed by the Assessing Authority. The petitioner contended that they were not granted an opportunity of hearing. Specifically, they argued that the show cause notice was neither received via email nor uploaded on the proper GST portal, but rather appeared under the "additional notices and orders" tab. This procedural defect, according to the petitioner, rendered the notice invalid. The respondent was the State of U.P. and two others.

Held

The Court held that a show cause notice uploaded under the "additional notices and orders" tab, and not on the main GST portal or via email, does not constitute valid notice. The Court agreed with the principle laid down in Ola Fleet Technologies Limited v. State of U.P. and 2 Others, which held that notices not on the GST portal but under the "additional notices and orders" tab are not effective. The reasoning was based on the understanding that such placement does not ensure proper notification to the assessee. Consequently, the impugned order dated 27.06.2022 was quashed and set aside. The authority was directed to issue a fresh show cause notice to the petitioner within two weeks and continue proceedings in accordance with law.

Key Issues

1. Whether a show cause notice uploaded under the "additional notices and orders" tab on the GST portal, and not on the main GST portal or via email, constitutes valid notice to the assessee, thereby affording an opportunity of hearing? This issue turns on the interpretation of procedural requirements for issuing notices under GST law. The petitioner argued that such a notice is invalid and does not constitute proper service, as it was not on the main portal or received via email. They relied on the Division Bench judgment in Ola Fleet Technologies Limited v. State of U.P. and 2 Others. The revenue or State did not record any specific arguments.