2021 (9) TMI 669 - HC - GST

Permission to implead Goods and Services Tax Network through his competent authority - Form GST DRC-07 served on the petitioner or not - Principles of natural justice - HELD THAT - At present, when all notices and orders are required to be submitted online through the GST portal, complete credibility of the system offered by the revenue authorities is necessary to be ensured, without exception. If the authorities are permitted or allowed to act negligently in discharge of such basic requirements, the day is not far when wholly unavoidable litigation would flood this Court. Service of notice or order is necessary to ensure minimum requirements of the rule of natural justice. At present, there is no material to accept the submissions of learned Standing Counsel. Therefore, let a personal affidavit be filed by the assessing authority-respondent no.2 within a period of one week to establish when he uploaded the entire order GST DRC-07 dated 20.07.2021 (as claimed). At present, no direction is required to be issued to the Goods and Services Tax Network, awaiting personal affidavit of the assessing authority - Put up as fresh on 21.09.2021.

Summary

Issues: Service of notice under GST Act, Rule of natural justice, Credibility of revenue authorities' system.

In this judgment by the Allahabad High Court, the petitioner sought to challenge a document received through the GST portal, Form GST DRC-07, dated 20.07.2021, which lacked reasons for the demand created. The petitioner claimed non-service of this document. The respondent, however, produced another Form GST DRC-07 with reasons appended to written instructions. The Court emphasized the importance of ensuring the credibility of the system offered by revenue authorities, especially in the online submission of notices and orders through the GST portal. The Court highlighted the necessity of service of notice or order to meet the minimum requirements of the rule of natural justice. The Court directed the assessing authority to file a personal affidavit within a week to establish when the order was uploaded on the portal, emphasizing the need for complete credibility in the system to avoid unnecessary litigation. The Court deferred issuing any direction to the Goods and Services Tax Network pending the submission of the assessing authority's affidavit. The case was scheduled for further hearing on 21.09.2021.