M/S Scsoft Technologies Private Limited vs. State Of Uttar Pradesh And Another

Facts

M/s Scsoft Technologies Private Limited (Petitioner) filed a writ petition challenging an ex-parte demand order and show cause notice dated April 19, 2024, and December 14, 2023, respectively, passed by the Deputy Commissioner, State Tax, Noida, under Section 73 of the Goods and Services Tax Act, 2017. The demand pertains to the financial year 2018-19. 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, making them unaware of the proceedings and unable to respond or challenge the order within the limitation period. The State (Respondent) 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 relied on the precedent set in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others and M/s Mohini Traders Vs. State of U.P. and Another. The reasoning was that the uploading of notices on the 'Additional Notices and Orders' tab, rather than the 'Due Notices and Orders' tab, meant the petitioner was not properly informed of the proceedings. This lack of proper communication entitled the petitioner to the benefit of doubt. 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 ratio decidendi is that notices uploaded on the 'Additional Notices and Orders' tab of the GST portal do not constitute due communication, and such assessee is entitled to a fresh opportunity to respond. The operative direction was for the Assessing Officer to issue a fresh notice of at least 15 days clear notice to the petitioner in the prescribed manner, after which further proceedings would take place.

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 due communication to the assessee, thereby entitling the assessee to a benefit of doubt? (Question of law and fact, turning on principles of natural justice and procedural fairness under the GST Act). Petitioner's Contention: The petitioner argued that due to the notices being uploaded on the 'Additional Notices and Orders' tab, they were unaware of the proceedings and the subsequent ex-parte order. They relied on the High Court's decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others (Writ Tax No. 855 of 2024) and M/s Mohini Traders Vs. State of U.P. and Another (Writ Tax No. 551 of 2023) which held that such uploading does not amount to proper communication, entitling the petitioner to relief. Respondent's Contention: The learned counsel for the Department did not dispute the contentions regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab. They acknowledged that the issue is covered by the judgment in Ola Fleet Technologies Pvt. Ltd. (Supra). The Standing Counsel also indicated that the GST Network, a separate entity, would be responsible for addressing such portal-related issues.