Naresh Chandra Biswas vs. State Of West Bengal And Ors.

Facts

The petitioner, Naresh Chandra Biswas, filed a writ petition challenging a rectification order dated 15.07.2024 passed by Respondent No. 4 and an appellate order dated 26.03.2026 passed by Respondent No. 3. The appellate order dismissed the petitioner's appeal solely on the grounds of limitation. The petitioner received a show cause notice in Form DRC 01 dated 07.02.2024 demanding tax, interest, and penalty, which was uploaded on the GST portal under the 'Additional Notice and Orders' tab. The petitioner claims to have only become aware of the rectification order upon receiving it by hand on 23.03.2025 after visiting the GST office. The petitioner argued that the proceedings and impugned orders violated principles of natural justice and statutory procedures.

Held

The Court held that the petitioner had made out a prima facie case. It observed that the show cause notice and rectification order were uploaded only under the 'Additional Notice and Orders' tab on the GST portal, and no separate intimation was given to the petitioner. This failure to provide proper intimation constituted a violation of natural justice, as it prevented the petitioner from replying to the notice. Consequently, the Court found that the dismissal of the petitioner's appeal by the appellate authority solely on the ground of limitation, without considering the merits, was not justified given the peculiar facts of the case. The Court quashed and set aside the order passed by the Appellate Authority dated 26.03.2026. It directed Respondent No. 3 to revisit the issue by admitting the appeal preferred by the petitioner and to consider the appeal on its merits, affording an opportunity of hearing to the petitioner and passing a fresh reasoned order within 12 weeks. The ratio decidendi is that a statutory authority must ensure proper communication of notices and orders to the assessee to uphold principles of natural justice, and an appeal should not be dismissed on limitation if the assessee was prevented from filing it or responding to notices due to procedural lapses by the authority.

Key Issues

1. Whether the dismissal of the petitioner's appeal by the appellate authority solely on the ground of limitation, without considering the merits, is legally sustainable, particularly in light of the alleged procedural irregularities in the issuance and communication of the show cause notice and rectification order under the West Bengal Goods and Services Tax Act and the Central Goods and Services Tax Act, 2017? Petitioner's arguments: The petitioner contended that the show cause notice and rectification order were uploaded only under the 'Additional Notice and Orders' tab on the GST portal, with no separate intimation provided. This lack of proper communication prevented the petitioner from replying to the notice, thus violating principles of natural justice. The petitioner argued that the entire proceedings and the impugned orders were contrary to law and statutory procedure. The petitioner relied on the principle that a case should not be dismissed on limitation without considering the merits, especially when procedural lapses by the revenue are alleged. Revenue/State's arguments: The State respondents argued that the show cause notice and order were uploaded on the common portal and that the petitioner had been granted ample opportunities to defend their case. They maintained that the appeal was rightly dismissed on limitation.