Goutam Sahoo vs. State Of West Bengal And Anr

Facts

The petitioner, Goutam Sahoo, filed a writ petition challenging an adjudication order dated 18.11.2023 passed by Respondent No. 2. The petitioner contended that a show cause notice dated 10.08.2023, demanding tax, interest, and penalty, 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 dated 28.07.2024 in January 2026 when their accountant checked the portal. The petitioner argued that the proceedings and the order were illegal, passed in violation of natural justice and procedural compliance. The State respondents opposed the petition, stating the petitioner had ample opportunity and the appeal was dismissed on limitation.

Held

The Court held that the petitioner had made out a prima facie case. The Court found that the show cause notice was only uploaded under the 'Additional Notice and Orders' tab on the GST portal, and no separate intimation was given to the petitioner. This failure to provide adequate intimation constituted a violation of natural justice, as it prevented the petitioner from replying to the notice. Considering these peculiar facts, the Court deemed interference warranted in the interest of justice. Consequently, the adjudication order dated 18.11.2023 was quashed and set aside. The petitioner was directed to file a reply to the show cause notice dated 10.08.2023 within two weeks of the order's communication. Respondent No. 2 was directed to provide an opportunity for a personal hearing and pass a fresh, reasoned, and speaking order of adjudication within 12 weeks, with the decision to be communicated to the petitioner within a week thereafter. The issue of limitation, as raised by the State, was implicitly set aside by quashing the order and directing a fresh adjudication.

Key Issues

1. Whether the adjudication order dated 18.11.2023 is illegal and invalid due to a violation of the principles of natural justice and procedural non-compliance, specifically concerning the service of the show cause notice under Section 73 of the CGST Act, 2017 (or equivalent SGST Act provision)? Petitioner's Arguments: The petitioner argued that the show cause notice was uploaded only on the GST portal under the 'Additional Notice and Orders' tab, and no separate intimation was provided. This lack of proper communication prevented the petitioner from responding to the notice, thus violating the principles of natural justice. The entire proceedings and the impugned order were therefore contrary to law and passed without due compliance with the prescribed procedure. Revenue/State's Arguments: The State respondents opposed the writ petition, submitting that the petitioner had been granted ample opportunities to defend their case, and therefore, the appeal was rightly dismissed on limitation. The judgment does not explicitly mention any specific provisions or precedents relied upon by the State.