M/S Vikas Textiles vs. State Of Uttar Pradeh And Another

Facts

The petitioner, M/s Vikas Textiles, filed a writ petition challenging an ex-parte demand order and show cause notice dated November 25, 2023, and September 6, 2023, respectively. These were issued by the Commercial Tax Officer, State Tax, Bareilly, under Section 73 of the Goods and Service Tax Act, 2017, creating a demand for the financial year 2017-18. The petitioner contended that the notices were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not the 'Due Notices and Orders' tab, leading to the petitioner's unawareness of the proceedings and inability to respond within the limitation period. The revenue did not dispute these contentions.

Held

The Court allowed the writ petition, quashing and setting aside the ex-parte demand order and show cause notice. The Court followed the precedent set in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which held that uploading notices on the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab meant the petitioner was entitled to the benefit of doubt. The reasoning was that the petitioner could not be expected to be aware of proceedings uploaded in a manner that was not readily visible or accessible through the standard portal interface. The Court found no useful purpose in keeping the petition pending or relegating the petitioner to statutory remedies, especially as the disputed amount was already deposited. The operative direction was for the Assessing Officer to issue a fresh notice to the petitioner with at least 15 days' clear notice, in the manner prescribed by law, and to proceed further based on that 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 impacting the validity of ex-parte proceedings and orders? Petitioner's Argument: The petitioner argued that the notices were uploaded on the 'Additional Notices and Orders' tab, which they were unaware of. This lack of proper communication prevented them from appearing before the authority or challenging the order within the limitation period. They relied on the High Court's decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others. Revenue's Argument: The learned counsel for the Department did not dispute the petitioner's contentions regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab and acknowledged that the issue was covered by the judgment in Ola Fleet Technologies Pvt. Ltd. (Supra).