M/S Digital Infotech System vs. State Of U.P. And Another

Facts

The petitioner, M/s Digital Infotech System, filed a writ petition challenging orders dated December 15, 2023, and December 22, 2023, passed by the Assistant Commissioner, State Tax Jurisdiction, NOIDA, under Section 73 of the Goods and Services Tax Act, 2017. These orders created a demand against the petitioner for the Financial Year 2017-18. The petitioner contended that the notices and orders were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not the 'Due Notices and Orders' tab, making them unaware of the proceedings. Consequently, they could neither appear before the authority nor challenge the orders within the limitation period. The petitioner relied on a previous judgment by this Court in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which dealt with a similar issue of notice uploading.

Held

The Court allowed the writ petition, quashing and setting aside the impugned orders dated December 15, 2023, and December 22, 2023. The Court found that the petitioner's contention regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab, rather than the 'Due Notices and Orders' tab, was not disputed by the Department. This fact, coupled with the precedent set in the case of Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, where a similar issue led to a remand, was decisive. The Court reasoned that the petitioner was entitled to the benefit of doubt due to the improper communication, which prevented them from availing their statutory remedies within the limitation period. The ratio decidendi is that if statutory notices are not communicated through the designated portal tab, the assessee cannot be held responsible for non-compliance or missing the opportunity to respond, and such proceedings are liable to be set aside. The Court directed the Assessing Officer to issue a fresh notice to the petitioner with at least 15 days' clear notice, in accordance with law, and to conduct further proceedings based on that 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 impacting the limitation period for challenging such orders? Petitioner's Arguments: 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 or challenging the impugned orders within the prescribed limitation period. They relied on the judgment in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, where a similar issue led to a remand. Respondent's Arguments: The counsel for the Department did not dispute the contentions regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab. They acknowledged that the issue was covered by the judgment in Ola Fleet Technologies Pvt. Ltd. (Supra). The Department's counsel, based on written instructions, stated that the assessing officer has no choice to upload orders in a manner that it reflects under a particular tab visible to the assessee, suggesting the issue might lie with the GST Network.