M/S Shri Bala Ji Stone Works vs. State Of U.P. And Another

Facts

The petitioner, M/s Shri Bala Ji Stone Works, is challenging an order dated 18.09.2022 passed by the Deputy Commissioner, State Tax, Prayagraj Sector – 4, Prayagraj (A) under Section 74 of the Goods and Service Tax Act, 2017. The petitioner contends that notices issued under Section 74 were uploaded on the 'Additional Notices and Orders' tab of the GST Portal, not the 'Due Notices and Orders' tab. Consequently, the petitioner claims to have been unaware of the notices and the subsequent order, preventing them from appearing before the authority or challenging the order within the limitation period. The petitioner relies on a previous judgment by this Court in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which dealt with a similar issue of notice upload methodology.

Held

The Court held that the petitioner is entitled to the benefit of doubt, as there was no material to reject the contention that the impugned order was not reflecting under the 'View Notices and Orders' tab. The Court found that the issue was covered by the judgment in Ola Fleet Technologies Pvt. Ltd. (Supra). The Court noted that the entire disputed amount was lying in deposit, meaning there was no outstanding demand. Therefore, the Court quashed and set aside the impugned order dated 18.09.2022. The Assessing Officer was directed to issue a fresh notice to the petitioner with at least 15 days' clear notice, in the manner prescribed by law, and thereafter, further proceedings were to take place. The ratio decidendi is that improper uploading of statutory notices on the GST portal, specifically on the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab, can lead to the quashing of consequential orders and a direction for fresh proceedings with proper notice.

Key Issues

1. Whether the uploading of notices and orders 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 triggering limitation periods for response and challenge, under Section 74 of the Goods and Service Tax Act, 2017? Petitioner's arguments: The petitioner argued that notices uploaded on the 'Additional Notices and Orders' tab are not considered proper communication, leading to their unawareness of the proceedings and the impugned order. They cited the case of Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, where a similar issue resulted in a remand. They also relied on M/s Mohini Traders Vs. State of U.P. and Another. Respondent's arguments: The learned counsel for the Department, based on available material, did not dispute the contentions regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab. They referred to written instructions indicating that the assessing officer has no option to choose specific tabs for uploading and that such issues might need to be addressed by the GST Network.