2024 (7) TMI 533 - HC - GST

Challenge to SCN and adjudication order - attachment of petitioner's bank account - SCN was not uploaded in the view notices and orders section of the portal and as such the petitioner did not have knowledge with regard to the same - principles of natural justice - HELD THAT - Admittedly, in this case the show cause notice under Section 73 of the said Act has been issued on 26th July, 2023. It is also not in dispute that the said notice was not uploaded in the view notices and orders section of the portal but was uploaded in the view additional notices and orders section. It is found from the provisions of Section 73 (8) of the said Act that a registered taxpayer is entitled to deposit within 30 days from the date of issuance of the show cause notice, the demand arising out of the show cause notice. Taking into consideration such provision and the corresponding Rule being Rule 142 (3) of the CGST Rules 2017, ordinarily 30 days time is required to be granted for responding to a show cause notice. However, in the facts of the case, the petitioner did not file any response to the show cause notice nor did the petitioner apply for extension of time - It is found from the pleadings on record, inter alia, including the disclosure made today that the show cause notice had been uploaded in the view additional notices and orders section of the portal and not in the view notices and orders section where ordinarily all orders and notices are uploaded. It cannot be said that the petitioner had little or no opportunity to respond to the show cause notice. Further, at this stage without going into the controversy whether uploading of a notice in the view additional notices and orders section of the portal constitutes due service of notice within the meaning of Section 69 (1) (d) of the said Act, since, there may have been some confusion in identifying the notice/orders in the pre-redesigned dashboard of the portal, the petitioner should be permitted to approach the appellate authority - the order of attachment dated 21st February 2024 cannot be sustained and the same is accordingly quashed. Petition disposed off.

Summary

Issues:
Challenge to show cause notice and adjudication order under WBGST/CGST Act, 2017; Validity of notice uploaded in portal's "view additional notices and orders" section; Compliance with statutory provisions regarding response time; Alternative remedy available to approach appellate authority.

Analysis:
The petitioner challenged a show cause notice and an adjudication order issued under the WBGST/CGST Act, 2017, for the tax period from July 2017 to March 2018. The petitioner, a registered taxpayer, claimed lack of knowledge about the proceedings until an attachment order was issued to the petitioner's bank account. The petitioner argued that the show cause notice was not uploaded in the correct section of the portal, depriving them of the opportunity to respond. The respondent contended that the petitioner had ample time to respond and could have done so even after the specified period. The respondent also stated that the uploading of notices on the portal was beyond their control, and the petitioner had an alternate remedy to approach the appellate authority.

The court noted that the show cause notice was not uploaded in the designated "view notices and orders" section of the portal but in the "view additional notices and orders" section. While the statutory provision allowed 30 days to respond to such notices, the petitioner did not file any response or seek an extension. The court acknowledged the confusion caused by the portal's redesign but emphasized that the petitioner had the opportunity to respond. The court directed the petitioner to approach the appellate authority within six weeks with an application for condonation of delay, ensuring compliance with pre-deposit provisions.

The court found that the judgments cited by the petitioner were factually distinguishable and did not support their case. It was concluded that the uploading of notices in the "view additional notices and orders" section did not invalidate the service of notice under the Act. The court quashed the order of attachment issued on February 21, 2024. The writ petition was disposed of with no order as to costs, and all parties were instructed to act based on the server copy of the court's order downloaded from the official website.