M/S Sharma Transport Agency vs. Assistant Commissioner Of State Tax, Asansol Charge And Ors

Facts

The petitioner, M/s. Sharma Transport Agency, filed a writ petition challenging an adjudication order dated December 22, 2023, passed by the Assistant Commissioner of State Tax, Asansol Charge, under Section 73 of the West Bengal Goods and Services Tax Act and the Central Goods and Services Tax Act, 2017. The petitioner contended that a show cause notice dated September 22, 2023, was uploaded only on the GST portal under the 'Additional Notice and Orders' tab, without any separate intimation. Consequently, the petitioner was unaware of the notice and could not respond. The petitioner only discovered the show cause notice and the adjudication order in May 2026 when a new accountant found them. The petitioner argued that these proceedings violated principles of natural justice and statutory procedure.

Held

The Court held that the petitioner had made out a prima facie case. It found that the show cause notice was indeed uploaded only under the 'Additional Notice and Orders' tab on the GST portal, and no separate intimation was provided to the petitioner. This lack of adequate notification prevented the petitioner from replying to the show cause notice, which the Court deemed a violation of the principles of natural justice. Consequently, the Court found interference warranted in the interest of justice. The Court quashed and set aside the show cause notice dated September 22, 2023, and the adjudication order dated December 22, 2023. The respondent No. 1 was directed to issue a fresh show cause notice to the petitioner within two weeks. The petitioner was granted two weeks thereafter to file a comprehensive reply. The respondent No. 1 was then directed to consider and dispose of the reply by passing a reasoned order within twelve weeks of receiving the reply, after affording an opportunity of personal hearing. The decision was to be communicated to the petitioner within a week thereafter.

Key Issues

1. Whether the uploading of a show cause notice solely under the 'Additional Notice and Orders' tab on the GST portal, without separate intimation, constitutes a violation of the principles of natural justice and the procedure prescribed under the GST Act, thereby rendering the subsequent adjudication order invalid? Petitioner's arguments: The petitioner argued that the sole uploading of the show cause notice on the GST portal under a specific tab, without any direct intimation, prevented them from receiving actual notice and responding to the allegations. This failure to provide adequate notice, they contended, violated the fundamental principles of natural justice and the procedural requirements of the GST Act, making the entire adjudication process and the resultant order illegal and void. Revenue's arguments: The State respondents opposed the petition, submitting that the petitioner had been granted ample opportunities to defend their case, and therefore, the adjudication order was rightly passed. They did not specifically address the method of notice delivery or the petitioner's claim of non-receipt.