Jai Durga Steel Industries, Sua Road, Mandi Gobindgarh vs. State Of Punjab And Others

Facts

The petitioner, M/s Jai Durga Steel Industries, filed a writ petition challenging an order-in-original. The core issue was whether uploading a notice and order on the common portal (www.gst.gov.in) constituted proper service under Section 169 of the Central Goods and Services Tax Act, 2017. The petitioner claimed to be illiterate and unaware of the uploaded notice. The revenue contended that uploading on the common portal is valid service, especially if the assessee has knowledge and contests proceedings. This case was linked to previous judgments by the same court in Luxmi Traders v. Union Territory of Chandigarh and The Amar Cooperative LC Society Ltd. v. State of Haryana and Others.

Held

The Court held that service of a Show Cause Notice (SCN) upon the petitioner/assessee cannot be deemed sufficient merely on account of its uploading on the Common Portal, unless its receipt is acknowledged or a reply is filed. Where an SCN is served only by uploading it on the Common Portal and an ex parte order is passed in the absence of a reply, the proceedings would stand restored to the stage of issuance of the SCN. The petitioner would then be at liberty to file a reply within four weeks, after which the Department must proceed after affording an opportunity of hearing. In cases where the order-in-original was passed after contest and served only by uploading on the Common Portal, the period of limitation for appeal would not be triggered, and the assessee would have four weeks from the date of the judgment to file an appeal. If appeals were dismissed on limitation grounds for such service, those orders would be set aside, and the appeals restored for hearing on merits. The Court found substance in the petitioner's submissions and was not persuaded to take a different view from its previous judgments in Luxmi Traders and The Amar Cooperative LC Society Ltd. The Court noted that the complex process of service by uploading, especially when it leads to serious civil consequences and the assessee claims illiteracy, cannot receive the approval of law. The instant writ petition was disposed of in terms of the previous judgments.

Key Issues

1. Whether uploading a notice and order on the common portal (www.gst.gov.in) amounts to proper service under Section 169 of the Central Goods and Services Tax Act, 2017, particularly when the assessee claims illiteracy and lack of knowledge. Petitioner's Arguments: The petitioner argued that the Rules of 2017 do not permit the uploading of Show Cause Notices (SCN) or orders on the Common Portal for service. Rule 142 of the Rules of 2017 is the only relevant provision for electronic communication, and it was argued that the Common Portal is not expressly specified for effecting service of SCN/orders. The petitioner also highlighted that the Common Portal is used for various specific functions like registration, returns, and payments, but not for formal service of SCN/orders. The petitioner claimed to be illiterate and had no knowledge of the uploaded order. Revenue's Arguments: The revenue contended that service of notice by uploading it on the Common Portal cannot be discarded where the person concerned has knowledge of it and has contested the proceedings by filing a reply. They argued that in cases where the SCN has been responded to and the order-in-original is passed after contest, the order cannot be challenged merely due to a defect in service by uploading on the Common Portal. The revenue also referred to an amendment by the Finance Act, 2022, introducing Section 115, which retrospectively amended a notification to include all functions under the Central Goods and Services Tax Rules, 2017, to be performed on the Common Portal.