M/S Chauhan Associates vs. State Of Uttar Pradesh And Another

Facts

The petitioner, M/s Chauhan Associates, filed a writ petition challenging orders dated 04.12.2023 and 31.01.2023 passed by the Assistant Commissioner, State Tax, Noida, under Section 73 of the Goods and Services Tax Act, 2017, which created a demand against them. The petitioner contended that the notices and orders were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not the 'Due Notices and Orders' tab. Consequently, the petitioner was unaware of the proceedings and could not respond or challenge the orders within the limitation period. The respondent's counsel did not dispute these contentions, acknowledging that the issue was covered by a previous judgment.

Held

The Court held that the petitioner was entitled to the benefit of doubt as the impugned orders were not reflected under the 'View Notices and Orders' tab, but rather under the 'Additional Notices and Orders' tab. The Court found no material to reject the petitioner's contention that they were unaware of the order due to this procedural lapse. The Court noted that the entire disputed amount was lying in deposit, meaning there was no outstanding demand. Citing the judgment in Ola Fleet Technologies Pvt. Ltd. (Supra), the Court found no useful purpose in keeping the petition pending or relegating the petitioner to statutory remedies. The impugned orders were quashed and set aside. The Assessing Officer was directed to issue a fresh notice of at least 15 days to the petitioner in the prescribed manner, after which further proceedings could 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 proper communication to the assessee, thereby impacting the limitation period for response and challenge? (Question of fact and law, concerning principles of natural justice and procedural fairness under the GST Act). Petitioner's arguments: The petitioner argued that uploading on the 'Additional Notices and Orders' tab meant they were unaware of the proceedings, preventing them from appearing before the authority or questioning the order within the statutory period. They relied on the High Court's decision 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. Respondent's arguments: The respondent's counsel did not dispute the factual contention regarding the tab where notices and orders were uploaded. They acknowledged that the issue was covered by the judgment in Ola Fleet Technologies Pvt. Ltd. (Supra). The Standing Counsel initially contended that the assessing officer had no choice in selecting the upload tab, suggesting the issue might lie with the GST Network, but ultimately did not dispute the petitioner's claim.