Samaridhhi Industries vs. Union Of INDIA

Held

The Court acknowledged that the petitioner had not filed a reply to the show cause notice and had missed the statutory appeal period. However, considering the petitioner's contention regarding the visibility of the notice on the GST portal and the fact that the writ petition was entertained, the Court decided to grant one opportunity to the petitioner. The Court reasoned that while the petitioner had alternative remedies, the writ petition was filed due to the alleged procedural irregularity in the notice's placement. The Court did not definitively rule on the constitutional violation but provided a path for reconsideration. The ratio decidendi is that in cases of alleged procedural infirmities in notice delivery via online portals, even after the expiry of the appeal period, a High Court may grant a conditional opportunity for reconsideration if the writ petition is entertained, especially when the petitioner agrees to deposit a portion of the disputed amount. The Court directed the petitioner to deposit 50% of the tax amount with penalty (excluding interest) along with a reply to the show cause notice within one month. Upon compliance, the Assistant Commissioner is to reconsider the matter in accordance with the law. The writ petition was finally disposed of.

Facts

The petitioner, Samaridhi Industries, filed a writ petition before the Madhya Pradesh High Court challenging an Order-In-Original dated April 29, 2024, passed by the Assistant Commissioner, State Goods and Service Tax Department. This order levied a demand of Rs. 67,14,958/- as tax, interest, and penalty for the period April 2018 to March 2019. The petitioner argued that the show cause notice dated January 4, 2024, and the subsequent order were not properly served as they were uploaded under the 'Additional Notice Category' on the GST portal, and they were unaware of these proceedings. The petitioner also stated they did not file a reply to the show cause notice and had missed the appeal period. The respondents contended that a pre-show cause notice was issued on December 13, 2023, to which the petitioner did not respond, followed by the show cause notice and a reminder with a personal hearing, which the petitioner also failed to attend.

Key Issues

1. Whether the uploading of the show cause notice and subsequent order under the 'Additional Notices and Orders' category on the GST portal, rather than the 'Notices and Orders' category, constitutes a violation of the petitioner's fundamental rights under Articles 14 and 19(1)(g) of the Constitution of India, thereby vitiating the proceedings? Petitioner's contention: The petitioner argued that the placement of the show cause notice and order in the 'Additional Notices and Orders' section, instead of the primary 'Notices and Orders' section, rendered them unaware of the proceedings, violating their right to natural justice and constitutional rights. They relied on various High Court judgments where similar placements led to the quashing of orders and remands. Revenue's contention: The respondents argued that the GST portal was upgraded on January 16, 2024, making both 'Notices and Orders' and 'Additional Notices and Orders' visible side-by-side. Since the show cause notice was issued after this upgrade (January 4, 2024), it was visible to the petitioner. They cited a Delhi High Court judgment in Chirag Garg, which declined to entertain a writ petition on similar grounds for notices issued after January 16, 2024.