M/S Natraj Organics Limited vs. State Of U.P. And Another

Facts

M/s Natraj Organics Limited (the petitioner) filed a writ petition challenging an order dated December 13, 2023, passed by the Deputy Commissioner, Sector-8, Muzaffarnagar, under Section 73 of the Uttar Pradesh Goods and Service Tax Act, 2017. The petitioner contended that the notice and order were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not the 'Due Notices and Orders' tab. Consequently, the petitioner claimed to be unaware of the proceedings and unable to appear before the authority or challenge the order within the limitation period. The revenue did not dispute these contentions regarding the uploading of notices and orders.

Held

The Court allowed the writ petition, quashing and setting aside the impugned order dated December 13, 2023, passed by the Deputy Commissioner. The Court relied on its previous decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which held that uploading notices and orders on the 'Additional Notices and Orders' tab, rather than the 'Due Notices and Orders' tab, did not constitute proper communication. The Court found that the petitioner was entitled to the benefit of doubt due to this improper uploading, which prevented them from being aware of the proceedings and availing their remedies within the limitation period. The reasoning was that the portal's functionality and the GST Network's role in managing it were factors that could lead to such discrepancies, and the assessee should not be prejudiced by them. The Court directed the Assessing Officer to issue a fresh notice to the petitioner with at least 15 days' clear notice, in accordance with the law, and to proceed further based on that notice.

Key Issues

1. Whether the uploading of a notice and order on the 'Additional Notices and Orders' tab of the GST portal, instead of the 'Due Notices and Orders' tab, constitutes proper communication to the assessee, thereby enabling them to respond and seek remedies within the prescribed limitation period, as contemplated under Section 73 of the Uttar Pradesh Goods and Service Tax Act, 2017? The petitioner argued that the uploading on the 'Additional Notices and Orders' tab did not amount to proper communication, rendering them unaware of the proceedings and unable to file a timely response or challenge the order. They relied on the High Court's decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others. The respondent (State of U.P. and Another) did not dispute the petitioner's contentions regarding the manner of uploading notices and orders and acknowledged that the issue was covered by the precedent in Ola Fleet Technologies Pvt. Ltd.