M/S Radhika Industries vs. State Of U.P. And Another

Facts

The petitioner, M/s Radhika Industries, filed a writ petition challenging an order dated March 14, 2024, passed by the Commercial/State Tax Officer, Sector-2, State Tax, Maharaj Ganj, under Section 73 of the Goods and Service Tax Act, 2017. This order created a demand against the petitioner for the Financial Year 2018-19. The petitioner contended that the notices and the order 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 and unable to respond within the limitation period. The Department did not dispute these contentions, acknowledging that the issue was covered by a previous judgment of the High Court in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others.

Held

The Court allowed the writ petition, quashing and setting aside the impugned order dated March 14, 2024. 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 High Court's previous judgment in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which dealt with similar circumstances of improper communication, led the Court to grant relief. The Court reasoned that the petitioner was entitled to the benefit of doubt due to the lack of proper communication. The ratio decidendi is that if statutory notices and orders are not communicated through the designated and accessible portal tabs, leading to the assessee's unawareness and inability to respond within the prescribed time, such proceedings are vitiated. 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, for further proceedings.

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 under the Goods and Service Tax Act, 2017, specifically concerning the procedural fairness required under Section 73? Petitioner's Arguments: The petitioner argued that the notices and the impugned order were not properly communicated as they were uploaded on the 'Additional Notices and Orders' tab. This prevented them from being aware of the proceedings and filing a timely response or appeal, thus violating principles of natural justice and statutory procedural requirements. 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 Arguments: The Department, based on written instructions, did not dispute the factual contention regarding the tab where the notices and order were uploaded. They acknowledged that the issue was covered by the precedent in Ola Fleet Technologies Pvt. Ltd. The Department also noted that the assessing officer has no control over which tab the GST Network uploads the documents to.