Inbox Media Private Limited vs. State Of U.P. And 2 Others

Facts

The petitioner, Inbox Media Private Limited, filed a writ petition challenging an order dated 05.04.2024 passed by the Assistant Commissioner, State Tax, Varanasi, under Section 73 of the Goods and Service Tax Act, 2017. The petitioner contended that they were unaware of the notices and the order because the notices were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not the 'Due Notices and Orders' tab. This prevented them from appearing before the authority or challenging the order within the limitation period. The Department did not dispute these contentions, acknowledging that the issue was covered by a previous judgment.

Held

The Court held that the petitioner is entitled to the benefit of the doubt regarding the proper communication of the notices and the impugned order. The Court found that the impugned order was not reflected under the 'View Notices and Orders' tab, which prevented the petitioner from seeking appropriate remedies within the limitation period. Relying on the precedent set in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, the Court quashed and set aside the impugned order dated 05.04.2024. The Court directed the Assessing Officer to issue a fresh notice to the petitioner with at least 15 days' clear notice, in accordance with law, and to proceed further based on that notice. The ratio decidendi is that non-compliance with the prescribed method of communication of statutory notices and orders on the GST portal, leading to the assessee's lack of awareness and inability to respond within the stipulated time, warrants setting aside the consequential order and remanding the matter for fresh proceedings.

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 under Section 73 of the Goods and Service Tax Act, 2017? Petitioner's Argument: The petitioner argued that the notices were not properly communicated as they were uploaded on the 'Additional Notices and Orders' tab, making them unaware of the proceedings and the impugned order. They relied on the High Court's decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, which granted relief in a similar situation. Respondent's Argument: The Department, based on material on record, did not dispute the petitioner's contentions regarding the uploading of notices and orders on the 'Additional Notices and Orders' tab. They acknowledged that the issue was covered by the Ola Fleet Technologies Pvt. Ltd. judgment. The Department also noted that the assessing officer has no choice regarding which tab the order reflects on, and any issue with the portal functionality would need to be addressed by the GST Network.