M/S Zycom INDIA vs. Deputy Commissioner State Tax, Sector -1, Bulandshahr And Another

Facts

The petitioner, M/s Zycom India, filed a writ petition challenging an order dated 21.03.2024 passed by the Deputy Commissioner, State Tax, Sector-1, Bulandshahar, under Section 73 of the Goods and Service Tax Act, 2017. The petitioner argued that the notices and the impugned order were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not the 'Due Notices and Orders' tab. Consequently, the petitioner claimed to be unaware of the proceedings and unable to appear before the authority or challenge the order within the limitation period. The revenue did not dispute the factual contention regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab.

Held

The Court allowed the writ petition, quashing and setting aside the impugned order dated 21.03.2024. The Court relied on the precedent set in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, where a similar issue of notices being uploaded on the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab was considered. The Court found merit in the petitioner's contention that this manner of uploading did not constitute proper communication, preventing them from availing their remedies within the limitation period. The Court noted that the revenue did not dispute this factual aspect. The ratio decidendi is that proper communication of notices and orders is essential for due process, and uploading on an obscure tab that the assessee may not regularly check, leading to a lack of awareness and inability to respond, renders the subsequent proceedings vulnerable. The Court directed the Assessing Officer to issue a fresh notice to the petitioner with at least 15 clear days' notice, in the prescribed manner, and to conduct further proceedings thereafter.

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 enabling them to respond within the prescribed limitation period, as per Section 73 of the Goods and Service Tax Act, 2017? Petitioner's Contention: The petitioner argued that the uploading of notices and orders on the 'Additional Notices and Orders' tab prevented them from being aware of the proceedings and thus from filing a timely response or challenge. They relied on the High Court's decision 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 Department, based on written instructions, did not dispute the factual aspect of the uploading. However, they contended that the assessing officer has no control over which tab the order reflects. They suggested that any issue with the portal's functionality would need to be addressed by the GST Network.