2024 (11) TMI 335 - HC - GST

Violation of principles of natural justice - neither the show cause notice nor the impugned order of assessment has been served on the petitioner by tender or RPAD, instead it had been uploaded in the common portal under the tab Additional Notices/Orders - HELD THAT - The impugned order is set aside and the petitioner shall deposit 25% of the disputed tax within a period of two (2) weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. The petition is disposed off.

Summary

Issues:
Challenge to order based on violation of principles of natural justice, failure to serve show cause notice and impugned order, inability to access common portal for adjudication proceedings, technical glitches in GST portal affecting response to notices, request for opportunity to present objections before adjudicating authority.

Analysis:
The Writ Petition challenges the respondent's order dated 31.12.2023, alleging a breach of natural justice principles. The petitioner, a registered dealer under the GST Act, faced surprise inspection revealing various defects in tax compliance. The petitioner received a Form GST DRC-01A notice on 31.08.2023, responded with a detailed representation supported by evidence on 15.09.2023, and subsequently faced a show cause notice on 28.09.2023 followed by the impugned order on 31.12.2023. However, neither the show cause notice nor the order of assessment were physically served to the petitioner, being only uploaded on the common portal. The petitioner's inability to access the portal hindered participation in adjudication proceedings, leading to the request for an opportunity to present their case.

The petitioner cited technical glitches in the GST portal post-implementation, causing delays in responses to notices and orders. The petitioner expressed readiness to pay 25% of the disputed tax and sought a final opportunity to present objections before the adjudicating authority. The learned Government Advocate for the respondent did not strongly oppose this request. Consequently, the impugned order was set aside, mandating the petitioner to deposit 25% of the disputed tax within two weeks. Upon compliance, the impugned order would be treated as a show cause notice, allowing the petitioner four weeks to submit objections with supporting documents. Failure to meet these deadlines would revive the impugned order of assessment.

In conclusion, the Writ Petition was disposed of with no costs imposed. The petitioner was granted the opportunity to present objections before the adjudicating authority upon depositing 25% of the disputed tax within the stipulated timeframe. Failure to comply with the conditions would result in the revival of the impugned order.