Samaridhhi Indusries vs. Union Of INDIA
Held
The Court held that the petitioner's argument regarding the invalidity of the show cause notice and order due to their upload under the "Additional Notices and Orders" tab is not sustainable for notices issued after January 16, 2024. The Court noted that the GST portal was upgraded on January 16, 2024, and from that date onwards, both "Notices and Orders" and "Additional Notices and Orders" tabs are visible side-by-side. The show cause notice in this case was issued on May 31, 2024, well after the upgrade, and therefore, it was visible to the petitioner. The Court acknowledged that the Order-In-Original was passed ex-parte as the petitioner did not submit a response, and the limitation period for filing an appeal had expired. However, considering the entertainment of the writ petition, the Court granted the petitioner one opportunity. 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, Samridhhi Industries, filed a writ petition challenging an Order-In-Original dated August 20, 2024, passed by the Assistant Commissioner, State Goods and Service Tax Department, Bhopal. This order levied a demand of Rs. 15,22,810/- as tax, interest, and penalty for the period April 2019 to March 2020, pursuant to a show cause notice issued under Section 73(1) of the MPGST Act, 2017, dated May 31, 2024. The petitioner claimed ignorance of the show cause notice and the order, stating they were uploaded under the "Additional Notices and Orders" section of the GST portal. The petitioner did not file a reply to the show cause notice or appear for the personal hearing, and the period for filing an appeal under Section 107 of the CGST Act had expired.
Key Issues
1. Whether the uploading of the show cause notice and subsequent order under the "Additional Notices and Orders" head on the GST portal, rather than the "Notices and Orders" head, renders them invalid, particularly when the portal was upgraded on January 16, 2024, making both tabs visible side-by-side? Petitioner's contention: The petitioner argued that the show cause notice and order were not properly served as they were uploaded under the "Additional Notices and Orders" section, which they were unaware of. They relied on several High Court judgments (M/s Ultratech Cement Ltd, M/s Light Group, Ayush Agarwal, M/s. Umang Realtech Pvt. Ltd.) where orders were quashed and matters remanded due to similar portal display issues, primarily concerning notices issued before the portal upgrade. Respondents' contention: The respondents contended that the GST portal was upgraded on January 16, 2024, and both "Notices and Orders" and "Additional Notices and Orders" tabs are visible side-by-side. They cited a Delhi High Court judgment (Chirag Garg) which declined to entertain a writ petition on similar grounds for notices issued after January 16, 2024. They asserted that the petitioner was given sufficient opportunities, including a reminder notice and personal hearing, and that the notices were visible after the upgrade.
Sections Cited
Section 73, Section 107, Section 61(3)
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Cause title — parties, addresses and appearances
ORDER Per: Justice Vivek Rusia The petitioner has filed the present petition being aggrieved by Order-In- Original.
The show cause notice dated 31.05.2024 issued under Section 73(1) of MPGST Act, 2017 and Order-In-Original dated 20.08.2024 passed by the Assistant Commissioner, State Goods and Service Tax Department Circle 3, Division 1, Bhopal, whereby the amount of Rs.15,22,810/- as a tax interest 2 penalty has been levied for the assessment year April, 2019 to March, 2020. The petitioner has a remedy of appeal under Section 107 of the CGST Act, 2017, but the petitioner has filed a writ petition on the ground of violation of Articles 14 and 19(1)(g) of the Constitution of India. Admittedly, the petitioner did not file reply to the show cause notice, hence a final order was passed. Thereafter, the pe
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