M/S Jaik Steel Works vs. State Of Uttar Pradesh And Another

Facts

The petitioner, M/s Jaik Steel Works, filed a writ petition challenging two orders dated 28.11.2023 and 05.09.2023 passed by the Deputy Commissioner, State Tax, Prayagraj, under Section 73 of the Goods and Services Tax Act, 2017, which created a tax demand. The petitioner contended that the notices and orders were uploaded on the 'Additional Notices and Orders' tab of the GST portal, rather than the 'Due Notices and Orders' tab. Consequently, the petitioner claimed to be unaware of the proceedings and unable to respond or challenge the orders within the limitation period. The revenue did not dispute these contentions and acknowledged that the issue was covered by a previous judgment of the High Court in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others.

Held

The Court held that the petitioner was entitled to the benefit of doubt as the notices and orders were not uploaded on the 'Due Notices and Orders' tab but on the 'Additional Notices and Orders' tab. The Court found no material to reject the petitioner's contention that the impugned orders were not reflecting under the 'View Notices and Orders' tab. Citing the precedent set in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, the Court quashed and set aside the impugned orders dated 28.11.2023 and 05.09.2023. The Court directed the Assessing Officer to issue a fresh notice to the petitioner with at least 15 days' clear notice, in the manner prescribed by law, and to proceed further based on that notice. The Court noted that the entire disputed amount was lying in deposit, and therefore, there was no outstanding demand. The issue of whether all replies and annexures filed by the assessee were displayed to and considered by the assessing officer was not explicitly decided but was alluded to as an existing dispute.

Key Issues

1. Whether the uploading of notices and orders on the 'Additional Notices and Orders' tab of the GST portal, instead of the 'Due Notices and Orders' tab, constitutes proper communication to the assessee, thereby triggering limitation periods for response and challenge, under Section 73 of the Goods and Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that uploading on the 'Additional Notices and Orders' tab did not amount to proper communication, rendering them unaware of the proceedings and unable to respond or challenge the impugned orders within the prescribed limitation period. They relied on the High Court's decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others and M/s Mohini Traders Vs. State of U.P. and Another. Respondent's Contention: The learned counsel for the Department did not dispute the factual contention regarding the tab where notices and orders were uploaded. They acknowledged that the issue was covered by the judgment in Ola Fleet Technologies Pvt. Ltd. The Standing Counsel, based on instructions, indicated that the assessing officer has no choice of tab for uploading and that any issue with the portal's functionality might lie with the GST Network.