Khyati Construction Company Principal Place Looshan Ka Baghicha Cantt Road Guna Madhya Pradesh 4730 vs. The State Of Madhya Pradesh

Held

The Court held that the impugned orders dated 22.01.2025 and 26.01.2025 were unsustainable. Following the law laid down by the Delhi High Court in *Anhad Impex* and the coordinate bench of this Court in *Agrawal Wheels Pvt. Ltd.*, the Court found that the manner in which the notice was communicated did not amount to proper service or bringing it to the petitioner's knowledge. The ratio decidendi is that a notice, to be valid, must be effectively communicated to the assessee, and mere availability on a portal under a specific heading without actual knowledge does not fulfill this requirement. Consequently, the impugned orders were quashed. The matter was remitted to the concerned authority for passing a fresh order after affording the petitioner an opportunity of a personal hearing.

Facts

The petitioner, Khyati Construction Company, filed a writ petition challenging a show cause notice and a final order passed under Section 74 of the GST Act. The petitioner contended that they did not receive the notice as it was displayed under the 'View Additional Notice and Orders' section on the GST portal, and therefore, it did not come to their knowledge. The impugned orders were dated 22.01.2025 and 26.01.2025. The petition was filed before the High Court of Madhya Pradesh at Gwalior.

Key Issues

1. Whether the show cause notice and the final order passed under Section 74 of the GST Act are sustainable when the petitioner claims the notice was not brought to their knowledge, being available only under the 'View Additional Notice and Orders' section on the portal? (Question of law and fact, turning on Section 74 of the GST Act). Petitioner's contention: The petitioner argued that the notice was not effectively served as it was not accessible in a manner that would ensure its knowledge, relying on the principle that due notice is a prerequisite for valid proceedings. They cited the Delhi High Court's decision in *Anhad Impex vs. Assistant Commissioner* and this Court's decision in *Agrawal Wheels Pvt. Ltd. vs. State of M.P.*. Revenue's contention: The judgment records no specific argument from the State/Revenue.