M/S Kamal Enterprises vs. State Of U.P. And Another

Facts

The petitioner, M/s Kamal Enterprises, filed a writ petition challenging an order dated 07.12.2023 passed by the Deputy Commissioner, State Tax, Gorakhpur, under Section 73 of the Goods and Service Tax Act, 2017. The petitioner contended that the notice and 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 claimed to be unaware of the proceedings and unable to appear before the authority or challenge the order within the limitation period. The respondent State did not dispute these contentions regarding the uploading of notices and orders.

Held

The Court allowed the writ petition, quashing and setting aside the impugned order dated 07.12.2023. The Court relied on its previous decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which held that if notices and orders are uploaded on the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab, the petitioner is entitled to the benefit of doubt. The reasoning was that such uploading method could lead to the assessee being unaware of the proceedings, thereby affecting their ability to seek remedies within the limitation period. The Court found no useful purpose in keeping the petition pending or relegating the petitioner to statutory remedies, especially as the disputed amount was already deposited. The operative direction was for the Assessing Officer to issue a fresh notice to the petitioner in the prescribed manner, providing at least 15 days' clear notice, and to conduct further proceedings based on that notice.

Key Issues

1. Whether the uploading of a notice and order under Section 73 of the Goods and Service Tax Act, 2017, 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? The petitioner argued that the non-compliance with the prescribed method of uploading notices and orders on the GST portal rendered them unaware of the proceedings, preventing them from availing appropriate remedies within the statutory period. They relied on the High Court's decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others. The respondent State, based on the available record, did not dispute the petitioner's contentions regarding the uploading of notices and orders and acknowledged that the issue was covered by the judgment in Ola Fleet Technologies Pvt. Ltd.