M/S Service Company INDIA vs. State Of Uttar Pradesh And Another

Facts

The petitioner, M/s Service Company India, filed a writ petition challenging orders dated 22.06.2023 and 26.05.2023 passed by the Deputy Commissioner, State Tax Noida, creating a demand for the financial year 2023-24. The petitioner contended that notices under Section 74 of the Uttar Pradesh Goods and Service Tax Act, 2017, were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not the 'Due Notices and Orders' tab. Consequently, the petitioner was unaware of the notices and the subsequent order, preventing them from appearing before the authority or challenging the order within the limitation period. The petitioner relied on a previous judgment in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which dealt with a similar issue of notice upload location.

Held

The Court allowed the writ petition, quashing and setting aside the orders dated 22.06.2023 and 26.05.2023 passed by the Deputy Commissioner, State Tax Noida. The Court found that the uploading of notices and orders on the 'Additional Notices and Orders' tab, instead of the 'Due Notices and Orders' tab, was not proper communication. This was based on the precedent set in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, where a similar issue led to the matter being remanded. The Court accepted the petitioner's contention that they were unaware of the proceedings due to the improper upload location, thus impacting their ability to respond within the limitation period. The ratio decidendi is that for effective communication and adherence to principles of natural justice, statutory notices and orders must be uploaded on the designated and accessible tab for the assessee. The Assessing Officer was directed to issue a fresh notice of at least 15 days clear notice to the petitioner in the manner prescribed by law, and further proceedings would take place based on this fresh notice.

Key Issues

1. Whether the uploading of notices and orders on the 'Additional Notices and Orders' tab of the GST portal, instead of the 'Due Notices and Orders' tab, constitutes proper communication to the assessee, thereby affecting their ability to respond within the prescribed limitation period, under Section 74 of the Uttar Pradesh Goods and Service Tax Act, 2017? Petitioner's contention: The petitioner argued that the notices and orders were not properly communicated as they were uploaded on the 'Additional Notices and Orders' tab, which they were unaware of. This prevented them from appearing before the authority and challenging the order within the limitation period. They relied on the judgment in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others and M/s Mohini Traders Vs. State of U.P. and Another. Respondent's contention: The learned counsel for the Department did not dispute the contentions regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab and acknowledged that the issue was covered by the judgment in Ola Fleet Technologies Pvt. Ltd. (Supra).