THE ASSESSEE CANNOT BE ABSOLVED OF RESPONSIBILITY TO MONITOR THE GST PORTAL

[Mr. M. GOVINDARAJAN]

GST introduced an online portal, the Goods and Services Tax Network (GSTN), for registration, filing of returns, payment of taxes, and other compliance-related activities. It streamlined the process and made it easier for taxpayers to fulfill their obligations. The GST portal was officially launched on 1st July 2017. The GST Common Portal has been made available to enable taxpayers enroll with GST and to meet the GST compliance requirement like filing return and making tax payment. The GST Portal is the government’s online platform which enables taxpayers to conduct various GST-based activities.  From GST registration to filing of returns, a taxable person can complete the entire process online via the GST Portal. This technological support allows him to avoid queuing up at local tax offices to pay taxes, view credit ledgers or claim tax refunds. He can also cancel his GST registration through this website. The platform also allows him to carry out all communications about his GST compliance. He can track his registration and tax submission status. Moreover, he can receive intimation on and respond to government notices.

The following can be accessed through the GST portal-

• Application for GST registration
• Making online GST payment and tracking payment status
• Filing of GST Returns including Reconciliation Statement 
• Claiming refunds for excess GST paid
• Locating and engaging a GST practitioner
• Activities relating to composition scheme.
• Filing for Export Refund
• Viewing E-Cash, E-Liability, and E-Credit Ledgers
• Submitting Letter of Undertaking
• Intimating stock
• Receiving invoice-wise details of input tax credit
• Cancelling GST registration
• Accessing the E-Way Bill portal
• To view the show cause notices issued by the Authorities
• To give reply and documents for the show cause notice
• To view the orders issued by the Authorities.

It is, therefore, essential for a taxable person to have daily access of the GST portal to do all activities.

Section 169(1)(d) of the Central Goods and Services Tax Act, 2017 provides that any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by making it available on the common portal.

Madhya Pradesh High Court in one case 2020-VIL-567-MP struck down a Show Cause Notice/ demand order on the ground that the same was not issued as per the procedure prescribed under Rule 142(1) of the Central Goods and Service Tax Rules, 2017 i.e. uploading of the SCN/ order on the Goods and Service Tax Network (GSTN) portal. In this case the Revenue authorities issued a SCN and a demand order, which was communicated to the petitioner via e-mail and these were not uploaded on the GSTN portal as prescribed under Rule 142(1) of the CGST Rules. The petitioner filed a writ petition on the ground that the said order should be quashed since it was not compliant with the prescribed procedure and even violated the principles of natural justice. The petitioner contended that if the order would have been uploaded on the GSTN portal, it would have enabled it to avail alternative remedy before higher forum.

While quashing the SCN/ demand order communicated by the Revenue authorities to the petitioner via email, the High Court made the following observations:

• A bare perusal of Rule 142 of the CGST Rules, reveals that the only mode prescribed for communicating an SCN/order, was by way of uploading the same on the GSTN portal.
• When a specific procedure is prescribed to perform a specific act, all other procedures/ modes except the one prescribed are excluded. This principle becomes all the more stringent when it is statutorily prescribed.

It is, therefore, essential for a tax payer to view the show cause notices, orders issued by the Authorities etc. in the GST portal.  This has been well explained in the following case law-

In M/S. BAJRANG & BAJRANG VERSUS THE STATE TAX OFFICER (FAC) , CHENNAI - 2024 (5) TMI 546 - MADRAS HIGH COURT, a show cause notice was issued to the petitioner. No reply has been filed by the petitioner to the show cause notice. In the absence of the petitioner the Assessing Officer decided the case against the petitioner on 29.12.2023. The petitioner filed a writ petition before the High Court challenging the order of Assessing Officer. The petitioner submitted the following before the High Court-

• The petitioner was unable to give reply to the show cause notice and also participate in the proceeding since he was 78 years and was suffering from various illnesses.
• He is ready to respond to each of the five defects dealt with in the impugned order if he is given an opportunity.
• He is willing to deposit 10% of the disputed tax as a condition for remand.

The Department submitted the following before the High Court-

• An audit of the petitioner was conducted and the audit report was furnished to the assessee.’
• A show cause notice was issued to the petitioner.
• Sufficient opportunity was granted to the petitioner but he did not avail the same.

The High Court considered the arguments of both the parties. The High Court also analyzed the impugned order. The High Court observed that an audit was conducted and the audit report dated 15.09.2023 was also issued to the petitioner. Thereafter a show cause notice was issued to the petitioner.

The High Court held that the petitioner cannot be absolved of responsibility as a registered person to monitor the GST portal.  At the same time, it is noticeable that the tax proposal was confirmed because the petitioner did not submit a reply along with supporting documents. Therefore, albeit by putting the petitioner on terms, the interest of justice demands that the petitioner be provided an opportunity.

Therefore, the High Court set aside the impugned order dated 29.12.2023. The High Court remanded the matter back to the original Adjudicating Authority. The High Court also directed the petitioner to remit the 10% of the disputed tax as agreed to by him within 3 weeks from the date of receipt of the order. The petitioner is to file reply to the show cause notice to the Authority. On receipt of the reply the Authority shall issue a fresh order within two months from the date of receipt of the reply of the petitioner after providing a reasonable opportunity to the petitioner.