GST Notices uploaded in Wrong Tab on Portal: Allahabad HC quashes Tax Demand [Read Order]

In a recent ruling, the Allahabad High Court quashed a GST demand after finding that the department had uploaded notices and orders under the "Additional Notices and Orders" tab instead of the "Due Notices and Orders" tab on the GST portal.

Ram Balak Gupta, the petitioner, challenged an order dated 30.11.2023 issued by the Assistant Commissioner. The petitioner’s counsel argued that they were unaware of the demand because it was not visible in the correct section of the portal, leading to a failure to challenge it in time.

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The petitioner relied on a previous judgment in Ola Fleet Technologies Pvt. Ltd. v. State of U.P., where the court had addressed a similar issue and granted relief to the taxpayer. The petitioner argued that the improper uploading of notices violated the principles of natural justice.

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The GST department’s counsel argued that tax officials had no control over how notices appeared on the GST portal, as the system was managed by the GST Network (GSTN). The department argued that notices were available to the petitioner, even if they were placed in a different tab.

The bench comprising Chief Justice Arun Bhansali and Justice Kshitij Shailendra observed that the petitioner was entitled to the benefit of the doubt because there was no evidence refusing their claim that the demand notice was inaccessible under the designated section. The court ruled that this misplacement deprived the petitioner of a fair opportunity to respond within the statutory limitation period.

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The court observed that such issues had been previously recognized and ruled upon in favor of taxpayers. The court quashed the demand order and directed the assessing officer to issue a fresh notice with at least 15 days' clear time for the petitioner to respond.

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The court further directed that all future proceedings be conducted only after ensuring proper notice delivery. The writ petition was allowed.

To Read the full text of the Order CLICK HERE

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