M/S Sel Manufacturing Company Limited vs. The State Of Madhya Pradesh

Held

The Court held that the uploading of notices on the GST portal is a valid mode of service as per the GST Act, 2017, and therefore, the petitioner's submission that physical service was required could not be accepted. The Court referred to previous judgments, including "Ms. Light Group v/s The State of Madhya Pradesh & Others," which addressed similar issues regarding the GST portal's notice display. The Court found that the petitioner had failed to respond to the show-cause notices and had not availed the statutory remedies of revival of registration or filing an appeal. The Court emphasized that writ jurisdiction under Article 226 is not to be invoked by a person who has not been vigilant about their rights and when alternative efficacious remedies exist. The Court noted that the petitioner approached the High Court only after the limitation period for filing an appeal had expired, and the statute has strict limitations for condoning delays. The Court also highlighted the mandatory pre-deposit requirement for filing an appeal. Therefore, the Court concluded that no case for interference was made out, and the petition was dismissed.

Facts

The petitioner, M/s SEL Manufacturing Company Limited, filed a writ petition challenging multiple show-cause notices issued under Section 62 of the CGST Act, 2017, demanding an aggregate of Rs. 8,58,86,990/- towards tax, interest, and penalty. The petitioner also challenged an order dated 24.04.2024, by which their GST registration was cancelled by the Assistant Commissioner of State Tax for non-filing of GST returns. The petitioner received show-cause notices from September 2023 to April 2024 for non-filing of GSTR-3B returns. Despite these notices being uploaded on the GST portal, the petitioner claimed they did not constitute sufficient service as they were not served physically. The petitioner also did not respond to a subsequent show-cause notice for cancellation of registration.

Key Issues

1. Whether the uploading of show-cause notices on the GST portal, specifically under the "View Notices and Orders" tab, constitutes sufficient service of notice to the petitioner, thereby complying with the principles of natural justice, under Section 46 of the Goods and Services Tax Act, 2017? 2. Whether the petitioner, having failed to avail the statutory remedies of filing a reply to the show-cause notices, applying for revival of cancelled registration, or filing a statutory appeal within the prescribed time, can invoke the writ jurisdiction under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner contended that mere uploading of notices on the GST portal does not amount to sufficient service and that physical service was necessary. They relied on various High Court judgments, including those from the Madras High Court and Delhi High Court, which highlighted issues with the GST portal's architecture and the placement of notices under "Additional Notices and Orders" leading to non-receipt. They also argued that the cancellation order violated principles of natural justice, citing Supreme Court precedents. Revenue's arguments: The revenue argued that uploading notices on the GST portal is a valid mode of service as per the GST Act, 2017. They further contended that the petitioner had alternative and efficacious remedies available, such as filing a statutory appeal, and that the writ petition was not maintainable due to the petitioner's failure to pursue these remedies and their delay in approaching the court.