Confederation Of Real Estate Developers Association Of INDIA (Credai) vs. Union Of INDIA & Ors.

Facts

The petitioner, Confederation of Real Estate Developers Association of India (CREDAI), challenged an order dated December 18, 2023, passed under Section 73 of the CGST Act/DGST Act for the period July 2017 to March 2018. The petitioner contended that the impugned order was passed in violation of principles of natural justice because it did not receive the Show Cause Notice (SCN) dated September 22, 2023. The petitioner stated that the SCN was not communicated via mail or other modes but was only uploaded on the portal under the 'Additional Notices and Orders' tab, which the petitioner did not access as it was not reflected under the 'Notices and Orders' tab. The respondents, Union of India and others, acknowledged that the issue was covered by previous High Court decisions and suggested remanding the matter.

Held

The Court held that the impugned order dated December 18, 2023, passed under Section 73 of the CGST Act/DGST Act, was liable to be set aside due to a violation of the principles of natural justice. The Court noted the petitioner's submission that the Show Cause Notice dated September 22, 2023, was not received as it was uploaded on the portal under the 'Additional Notices and Orders' tab and not under the 'Notices and Orders' tab. The respondents conceded that this issue was covered by previous decisions of the High Court. Consequently, the Court set aside the impugned order and granted the petitioner an opportunity to file a response to the SCN within two weeks. The adjudicating authority was directed to consider the response and pass appropriate orders after affording the petitioner a hearing. The ratio decidendi is that a taxpayer must be afforded a proper opportunity to respond to a show cause notice, and failure to ensure effective communication of such notices, even if uploaded on the portal, can vitiate the subsequent order.

Key Issues

1. Whether the impugned order dated December 18, 2023, passed under Section 73 of the CGST Act/DGST Act for the period July 2017 to March 2018, is liable to be set aside on the ground of violation of principles of natural justice due to non-receipt of the Show Cause Notice dated September 22, 2023? Petitioner's Contention: The petitioner argued that it did not receive the SCN dated September 22, 2023, as it was only uploaded on the portal under the 'Additional Notices and Orders' tab and not under the 'Notices and Orders' tab, which it regularly accessed. Therefore, the SCN was not brought to its notice, leading to a violation of natural justice. Respondent's Contention: The respondent acknowledged that the issue was covered by previous decisions of the High Court in ACE Cardiopathy Solutions Private Limited v. Union of India & Ors. and Kamla Vohra v. Sales Tax Officer Class II, and agreed to a remand.