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

Facts

The petitioner, M/s. Sharma Transport Agency, filed a writ petition challenging an adjudication order dated 21.08.2024 passed by the Deputy Commissioner, State Tax, Asansol Charge, under Section 73 of the West Bengal Goods and Services Tax Act and the Central Goods and Services Tax Act. The petitioner contended that a show cause notice dated 17.05.2024 was uploaded 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 learned about the adjudication order when a new accountant discovered the notice and order in May 2026. An amount of Rs. 70,696/- was recovered from the petitioner's electronic credit ledger on 16.06.2025. The petitioner argued that the proceedings and order were illegal, passed in violation of natural justice and procedural compliance.

Held

The Court held that the petitioner had made out a prima facie case. It found that the show cause notice was uploaded only under the 'Additional Notice and Orders' tab, and no separate intimation was provided to the petitioner. This lack of direct intimation prevented the petitioner from replying to the notice, which constituted a violation of the principles of natural justice. Considering these peculiar facts, the Court deemed interference warranted in the interest of justice. Consequently, the Court quashed and set aside the show cause notice dated 17.05.2024 and the adjudication order dated 21.08.2024. The Court directed the respondent No. 1 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 directed to consider and dispose of the petitioner's reply by passing a reasoned and speaking 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, thereby rendering the subsequent adjudication order invalid? (Question of law and fact, turning on principles of natural justice and procedural compliance under the GST Acts). 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, deprived them of an opportunity to respond. This failure to provide actual notice violated the principles of natural justice. They further contended that the entire proceedings and the impugned order were contrary to law and passed without due compliance with prescribed procedures. They relied on the fact that they only became aware of the notice and order much later, leading to the recovery of funds from their credit ledger. State'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.