M/S. Nine Corporate Energy Private Limited vs. Goods And Service Tax Officer W Ard-09, Dgst & Anr.

Facts

The petitioner, M/s. Nine Corporate Energy Private Limited, challenged an order dated 12 April 2024. The core of the challenge was that a Show Cause Notice (SCN) issued prior to 16 January 2024 was placed in the "Additional Notice and Orders" tab on the GST portal. This, the petitioner alleged, deprived them of an opportunity to respond to the SCN. The date of 16 January 2024 is significant as it marks the date when functional amendments and remedial steps were taken on the Goods and Services Tax Network portal, according to the respondents' consistent stand in similar cases. The respondents failed to provide instructions to their counsel despite a court order dated 04 February 2025.

Held

The Court held that the petitioner was indeed deprived of an opportunity to respond to the Show Cause Notice (SCN). The reasoning was based on the fact that the SCN predated the functional amendments made to the Goods and Services Tax Network portal on 16 January 2024. The Court accepted the petitioner's contention that the placement of the SCN in the "Additional Notice and Orders" tab, before these enhancements, would have prevented them from adequately responding. The ratio decidendi is that procedural defects that deny a party a fair opportunity to present their case, particularly concerning the accessibility of critical notices on digital platforms, render subsequent proceedings invalid. Consequently, the Court disposed of the writ petition by directing the competent authority to provide the petitioner with an opportunity of hearing. The authority is to consider the petitioner's response and then issue a fresh order concerning the tax period April 2018 to March 2019. The impugned order dated 12 April 2024 is to abide by this fresh decision. All other rights and contentions of the parties on merits were kept open.

Key Issues

1. Whether the placement of the Show Cause Notice (SCN) in the "Additional Notice and Orders" tab, prior to 16 January 2024, deprived the petitioner of a reasonable opportunity to respond, thereby vitiating the subsequent proceedings? This issue turns on the interpretation of procedural fairness and the functionality of the GST portal. Petitioner's arguments: The petitioner contended that the SCN was not accessible in a manner that allowed for a proper response, as it was placed in a less prominent section of the portal before the portal's functional enhancements on 16 January 2024. This effectively denied them their right to be heard. Respondents' arguments: The respondents' arguments are not recorded in the judgment, beyond their consistent stand regarding the significance of 16 January 2024 for GST portal functionality.