Failure to Respond to GST SCN send to email Despite Reminder not amounting to Invalid Service: Kerala HC Dismisses Petition [Read Order]

The Kerala High Court  has dismissed the petition challenging the order of determination under Section 73 of the Kerala State Goods and Services Tax Act, 2017 (KGST), while observing that failure to respond to Goods and Service Tax (GST) show cause notice (SCN) send to email despite reminder does not amounts to invalid service of notice.

Kvj Builders & Developers Private Limited, the petitioner is aggrieved by order of determination under Section 73 of the Kerala State Goods and Services Tax Act, 2017, ( 'the Act') issued for the financial year 2018-19. The Petitioner is a Government contractor engaged in carrying out works contracts for various State and Central Government departments, and is a registered taxpayer under the Central Goods and Services Tax Act, 2017/State Goods and Services Tax Act, 2017. According to the petitioner, due to an inadvertent error in the returns filed for the months of July and August 2018, there was a duplication of turnover.

Know How to Prepare Estimation and Viability for Project Reports? Know more CLICK HERE

 A show cause notice was issued to the petitioner on23.12.2023, which was not noticed by the petitioner, as it was uploaded in the additional notices and orders tab instead of notices and orders tab in the portal. As a result of failure to notice the show cause notices, petitioner could not file a reply or appear for determination, and hence, an order was issued on 23.04.2024 imposing a huge liability. Petitioner challenges the said order in this proceeding under Article 226 of the Constitution of India.

Read More: Deadline Alert: CBDT Sets April 30 as Last Day for Vivad se Vishwas Declarations

Relying in the decision of  Ramanattu Motor Corp vs. State of Kerala 2025 , the petitioner  contended that since the show cause notice was uploaded only in the additional notices and orders tab, he was unaware of if and due to non-service of notice, the order of determination ought to be set aside.

In M/S. Ramanattu Motor Corp's case (Supra), the Court had observed that during a particular period respondents used to upload show cause notices only in the additional notices and orders tab instead of notices and orders tab. There was an absence of proper instructions to that effect as well. It was held that in such circumstances there was a violation of the principles of natural justice. Changes were brought in the portal sometime before 16.02.2024 providing specific instructions on the same page in the portal indicating that show cause notice under Section 73 of the Act will also be uploaded in the additional notices and orders tab.

Read More: Supreme Court upholds Piramal’s Resolution Plan For DHFL

Though the show cause notice in the instant case was uploaded only in the additional notices and orders tab, a reminder notice was issued to the petitioner on 05.04.2024 by e-mail. Atleast when that e-mail was received, which is not disputed, petitioner could have verified the existence of the show cause notice and could have responded. Failure to respond despite reminder, leads this Court to conclude that there was service of notice.

GST READY RECKONER: Complete Topic wise Circulars, Instructions & Guidelines CLICK HERE

A single bench of Justice Bechu Kurian Thomas  observed that it cannot be held that the impugned order is passed in violation of the principles of natural justice, warranting interference by this Court under Article 226 of the Constitution of India. Petitioner ought to have initiated appropriate steps to pursue the statutory remedies enjoined by law.

Read More: NCLAT Upholds Liquidation of Go Airlines

The writ petition is dismissed, reserving the liberty of the petitioner to pursue his statutory remedies if available and in accordance with law.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates