M/S Ace Cardiopathy Solutions Private Limited vs. Union Of INDIA And Ors.

Facts

The petitioner, M/s Ace Cardiopathy Solutions Private Limited, challenged an order dated 13.03.2024 passed under Section 73 of the Central Goods and Services Tax Act, 2017, which created a demand against them. The petitioner contended that they never received the Show Cause Notice dated 08.12.2023. They argued that the notice was uploaded on the GST portal under the category of 'Additional Notices' rather than the easily accessible 'Notices' section, causing it to be overlooked. The petitioner sought an opportunity to respond to the Show Cause Notice and be granted a personal hearing. The respondents argued that uploading the notice on the portal constituted sufficient compliance as per Section 169 of the CGST Act.

Held

The Court held that the petitioner had made out a case that they missed the receipt of the Show Cause Notice due to its placement on the GST portal. The Court found the respondents' contention that uploading on the portal was sufficient compliance, as per Section 169 of the CGST Act, to be unconvincing in this specific context. The Court referred to multiple judgments of the Madras High Court, which had previously addressed similar issues arising from the complex architecture of the GST web portal, where notices were placed under 'Additional Notices and Orders' and went unnoticed by taxpayers. The Court noted that the impugned order itself recorded that the taxpayer had not replied or appeared. Consequently, the Court set aside the impugned order dated 13.03.2024. The Court directed the respondents to open the portal to enable the petitioner to file a response to the Show Cause Notice within 30 days. The Proper Officer was directed to re-adjudicate the Show Cause Notice within four weeks thereafter, and the petitioner was to be granted an opportunity of personal hearing.

Key Issues

1. Whether the uploading of a Show Cause Notice on the GST portal under the 'Additional Notices' category, as opposed to the 'Notices' category, constitutes sufficient compliance with the requirement of intimation to the taxpayer under the Central Goods and Services Tax Act, 2017, specifically Section 169? Petitioner's Arguments: The petitioner argued that they did not receive the Show Cause Notice dated 08.12.2023 because it was uploaded under the 'Additional Notices' heading on the GST portal, which is not easily accessible. They contended that this placement caused the notice to be missed, preventing them from responding and participating in the proceedings. They relied on judgments from the High Court of Madras in M/s East Coast Constructions and Industries Ltd. vs. Assistant Commissioner (ST) and Murugesan Jayalakshmi Vs. State Tax Officer, which highlighted issues with the portal's architecture and the need for clear access to notices. Respondents' Arguments: The respondents argued that in terms of Section 169 of the Central Goods and Services Tax Act, 2017, uploading a notice on the portal is sufficient compliance for intimating the taxpayer. They did not present any counter-arguments regarding the specific placement of the notice on the portal.