M/S Lakshya Bricks vs. State Of Rajasthan
Held
The Court acknowledged the petitioners' argument that service was not properly effected under Section 169 of the CGST Act, as notices were allegedly only placed on the portal. The Court noted that ex-parte orders were passed based on this purported service, leading to the seizure of bank accounts and business halt. Considering that the petitioners had already deposited Rs. 1,29,584/-, which is more than 10% of the disputed amount, the Court stayed further recovery. The Court directed the respondents to release the petitioners' bank accounts to enable them to continue their business. The deposited amount of Rs. 1,29,584/- was deemed sufficient for entertaining an appeal under Section 107 of the CGST Act. The petitioners were granted liberty to challenge the recovery orders before the Appellate Authority, which was directed to pass a speaking order on merits after providing a hearing opportunity within three months.
Facts
M/s Lakshya Bricks and its partner, Anil Agarwal, filed a writ petition challenging the actions of the State Tax authorities. The petitioners argued that notices were not properly served under Section 169 of the CGST Act, as they were only uploaded on the portal and not sent via registered email or post. Consequently, ex-parte orders were passed, leading to the seizure of the petitioners' bank accounts and halting their business operations. The petitioners stated they had already paid the principal amount of Rs. 1,29,584/-, with the total liability including interest amounting to Rs. 3,53,778/-. The High Court issued notice to the respondents and accepted the appearance of the counsel for the State and Union of India.
Key Issues
1. Whether service of notices solely by uploading them on the GST portal, without sending them via registered email or post, constitutes valid service under Section 169 of the CGST Act, 2017? The petitioners contended that mere uploading on the portal is insufficient service and violates the prescribed methods of communication. They argued that this lack of proper service led to ex-parte orders, which in turn resulted in the seizure of their bank accounts and business disruption. The respondents' arguments are not recorded in the judgment.
Sections Cited
Section 169, Section 107
AI-generated summary — verify with the full judgment below
[2025:RJ-JP:33038-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 11556/2025
M/s Lakshya Bricks, 43 Vijay Complex, Scheme No. 2, Al- war - 301001 Gstin-08Aaefl6476F1Z3 Through Its Partner Shri Anil Agarwal
Anil Agarwal, S/o Shri Prakash Agarwal, Aged About 54 Years, R/o Jawali Bhawan Colony, Station Road, Alwar, Rajasthan-301001 ----Petitioners Versus
State Of Rajasthan, Through Joint Secretary (Tax) Fi- nance Department (Tax Division), 1St Floor, Main Build- ing, Gate-2, Government Secretariat, Jaipur, Rajasthan- 302005
Union Of India, Through The Revenue Secretary, Depart- ment Of Revenue, Ministry Of Finance, North Block, New Delhi-110001
Joint Commissioner (State Tax), Commercial Taxes De- partment, Circle-B, Enforcement Wing-I, State Tax- Ra- jasthan, Jaipur Having Its Office At Room No. 410, 3Rd Floor, Kar Bhawan, Ambedkar Circle, Jaipur-302005
Assistant Commissioner (State Tax), Ward I, Circle A, Al- war Address Room No. 120, First Floor, Kar Bhawan, Hkm Nagar, Alwar, Rajasthan.
State Tax Officer, Ward I, Circle A, Alwar Address Room No. 120, First Floor, Kar Bhawan, Hkm Nagar, Alwar, Ra- jasthan. ----Respo
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