2024 (7) TMI 743 - HC - GST

Violation of principles of natural justice - service of SCN - SCN u/s 73 of the said Act was not uploaded in the view notices and orders section of the portal - Challenge to notifications dated 5th July 2022 and 31st March 2023 issued under Section 168A of the CGST/WBGST Act, 2017 - HELD THAT - Admittedly, in this case it is noticed that the show cause notice issued under Section 73 of the said Act was not uploaded in the view notices and orders section of the portal. It is, however, not in doubt that by email communications the petitioner was informed with regard to the exact location of the show cause notice on the portal. Such fact would corroborate from the email communications which remains uncontroverted. Be that as it may, since there was some confusion with regard to uploading of the show cause and the order and especially taking into consideration the fact that the dashboard of the portal has been re-designed, the petitioner should be permitted to challenge the aforesaid adjudication order dated 6th December 2023 passed under Section 73(9) of the said Act before the appellate authority. In the event, the petitioner approaches the appellate authority within 30 days from date and files an appeal along with an application for condonation of delay, the appellate authority, by condoning the delay shall hear out and dispose of the appeal on merits by passing a reasoned order, within a period of 12 weeks from date of filing of the said appeal upon giving an opportunity of hearing to the petitioner, subject to the petitioner complying with the requirement for pre-deposit, as is required for maintaining an appeal under Section 107 of the said Act. Petition disposed off.

Summary

Issues involved:
Challenge to notifications under CGST/WBGST Act, 2017, service of show cause notice and order under Section 73, violation of principles of natural justice, withdrawal of bank account attachment, communication through email, permission to challenge adjudication order, appellate authority's role, pre-deposit requirement for appeal under Section 107.

Analysis:

The High Court judgment dealt with a writ petition challenging notifications under the CGST/WBGST Act, 2017, focusing on the show cause notice and order issued under Section 73. The petitioner initially broadened the challenge but later confined it to the specific notice and order issued. The petitioner contended that the notice and order were not effectively served as they were not uploaded in the designated portal section for viewing notices and orders, creating confusion due to the portal's complexity before redesign. The petitioner argued that this denial of access violated principles of natural justice, leading to an ex-parte order.

The petitioner further highlighted a notice dated 6th May 2024 attempting to attach their bank account, which was discovered through the banker's disclosure without direct notification to the petitioner. However, a subsequent communication from the Assistant Commissioner confirmed the withdrawal of the bank account attachment order. The respondents, on the other hand, emphasized email communications notifying the petitioner about the notices, including the show cause notice under Section 73, specifying their location in the portal. The respondents defended their position by stating that the petitioner was duly informed, and any oversight on the petitioner's part could not be attributed to them.

Upon considering the arguments and evidence presented, the Court acknowledged that the show cause notice was not uploaded in the designated portal section but noted that the petitioner was informed via email about its location, which remained uncontested. Recognizing the confusion surrounding the uploading process and the portal's redesign, the Court allowed the petitioner to challenge the adjudication order before the appellate authority. The judgment directed the petitioner to file an appeal within 30 days, along with a condonation of delay application, ensuring compliance with pre-deposit requirements for maintaining the appeal under Section 107 of the Act.

In conclusion, the writ petition was disposed of with specific directions for the appellate process, emphasizing the importance of adherence to procedural requirements and principles of natural justice. The judgment emphasized the need for parties to act based on the official server copy of the order downloaded from the Court's website, with no costs imposed on any party involved.