M/S Shreya Steel Corporation vs. The Deputy Commissioner Of Revenue, Bally And Salkia Charge And Ors

Facts

The petitioner, M/s. Shreya Steel Corporation, filed a writ petition challenging an adjudication order dated September 18, 2025, passed by the Assistant Commissioner of Revenue, Bally & Salkia Charge, and an appellate order dated March 30, 2026, passed by the appellate authority. The petitioner's appeal was dismissed solely on the ground of limitation. The petitioner contended that a show cause notice dated August 12, 2025, was uploaded on the GST portal under the 'Additional Notice and Orders' tab, and no separate intimation was provided, preventing them from responding. This, they argued, violated principles of natural justice and statutory procedure. The State-respondents opposed the petition, asserting that the petitioner had ample opportunities and the appeal was correctly dismissed for limitation.

Held

The Court found that the petitioner had made out a prima facie case. It observed 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 lack of direct intimation prevented the petitioner from replying to the show cause notice, which the Court held constituted a violation of the principles of natural justice. Since the petitioner's appeal was dismissed by the appellate authority solely on the ground of limitation and not on merits, the Court deemed interference warranted in the interest of justice, considering the peculiar facts of the case. The Court quashed and set aside both the appellate order dated March 30, 2026, and the adjudication order dated September 18, 2025. The petitioner was directed to file a reply to the show cause notice within two weeks, which the concerned authority was to consider within four weeks by passing a fresh reasoned and speaking order after affording an opportunity of hearing. The decision was to be communicated to the petitioner within a week thereafter.

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 when the petitioner alleges a violation of principles of natural justice due to inadequate notice of the show cause notice under Section 107 of the WBGST Act and CGST Act, 2017. Contentions: Petitioner: Argued that the show cause notice was uploaded only on the GST portal under 'Additional Notice and Orders' without any separate intimation, leading to their inability to respond. This failure to provide proper notice constitutes a violation of natural justice and the prescribed procedure under the WBGST Act and CGST Act. Consequently, the dismissal of their appeal on limitation, without addressing the merits, is contrary to law. Revenue/State: Contended that the petitioner was granted ample opportunities to defend their case, and therefore, the appeal was rightly dismissed on the ground of limitation.