M/S Arun Pharma vs. State Of U.P. And 2 Others

Facts

The petitioner, M/s Arun Pharma, is challenging an order dated 06.04.2024 passed by the Assistant Commissioner, State Tax Deoria, under Section 73 of the Goods and Service Tax Act, 2017, which created a demand against them. The petitioner contends that the notices and the impugned order were uploaded on the 'Additional Notices and Orders' tab of the GST portal, rather than the 'Due Notices and Orders' tab. Consequently, the petitioner claims to have been unaware of the proceedings and unable to appear before the authority or challenge the order within the limitation period. The revenue, represented by the Standing Counsel, did not dispute the factual contention regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab.

Held

The Court held that the petitioner is entitled to the benefit of doubt, as the impugned order was not reflected under the 'View Notices and Orders' tab. The Court found no material to reject the petitioner's contention that the order was not properly communicated. Citing the precedent set in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, the Court observed that the issue of proper communication of the order was central. The Court noted that the entire disputed amount was lying in deposit, meaning there was no outstanding demand. Therefore, the Court quashed and set aside the impugned order dated 06.04.2024. The Assessing Officer was directed to issue a fresh notice to the petitioner with at least fifteen days' clear notice, in the manner prescribed by law, and thereafter, further proceedings were to take place. The Court did not consider the merits of the demand itself, focusing solely on the procedural defect in communication.

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 due communication to the assessee, thereby impacting the limitation period for challenging the order, as contemplated under Section 73 of the Goods and Service Tax Act, 2017? The petitioner argued that the non-uploading of the notice and order on the designated 'Due Notices and Orders' tab prevented them from being aware of the proceedings and availing appropriate remedies within the prescribed 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. The respondent revenue, through the Standing Counsel, did not dispute the factual assertion regarding the tab where the notices and orders were uploaded. However, they contended that the assessing officer has no control over the tab selection for uploading orders and that any issue with the web portal's functionality would need to be addressed by the GST Network.