M/S Binod Traders vs. The Union Of INDIA

Held

The Court held that the impugned orders dated 20.09.2023 and 08.05.2024 were liable to be set aside for non-compliance with Section 169 of the Bihar Goods and Service Act, 2017. The Court reasoned that the uploading of a summary show-cause notice on the portal was insufficient for valid service, and that proper modes of communication, such as registered post with acknowledgment due, were required. The Court found that the petitioner was not afforded an adequate opportunity to file a reply or be heard. Consequently, the matter was remanded to the concerned authority to issue a fresh summary show-cause notice, provide ample opportunity for reply/hearing, and pass a speaking order within six months. The appellate order, which dismissed the appeal on grounds of delay without proper reasoning, was also set aside as part of the overall non-compliance with procedural requirements.

Facts

The petitioner, M/s Binod Traders, filed a writ petition challenging an ex parte assessment order dated 20.09.2023 passed under Section 73(5) of the BGST Act, 2017, by the Joint Commissioner, State Tax, Siwan Circle, Siwan, for the Financial Year 2017-18. The petitioner also challenged the subsequent demand raised in Form DRC 07 dated 20.09.2023. The petitioner contended that the assessment order was passed without granting an opportunity of hearing as required by Section 75(4) and without proper service of notice under Section 169 of the BGST Act, 2017. The petitioner's appeal against this order was dismissed by the Additional Commissioner, Appeal, Saran Division, Chapra, on 08.05.2024, on the ground of delay, through a non-reasoned order. The petitioner argued that the notice dated 11.08.2023 was only uploaded on the GST portal, which they claim is not a valid mode of service.

Key Issues

1. Whether the ex parte assessment order dated 20.09.2023, passed under Section 73(5) of the BGST Act, 2017, is liable to be quashed for violation of the principle of natural justice due to non-service of notice and absence of an opportunity of hearing, as contemplated under Section 75(4) and Section 169 of the BGST Act, 2017? 2. Whether uploading of a summary show-cause notice on the GST portal constitutes valid service of notice under Section 169 of the BGST Act, 2017? Contentions of the Petitioner: The petitioner argued that the assessment order was passed ex parte without proper service of notice as required by Section 169 of the BGST Act, 2017, and without granting an opportunity of hearing as mandated by Section 75(4). They contended that mere uploading of notices on the GST portal cannot be considered a valid mode of service. The petitioner also challenged the appellate order for being a one-line, non-reasoned dismissal on grounds of delay. Contentions of the Respondent: The judgment does not record specific contentions from the respondent authorities regarding the validity of service or the opportunity of hearing.