Notices uploaded under incorrect GST Portal Tab: Allahabad HC quashes demand and allows Fresh Notice [Read Order]

The High Court of Allahabad, quashed the demand order quashed the demand order after finding that the notices were uploaded under the 'Additional Notices and Orders' tab on the Goods and Service Tax(GST) portal instead of the 'Due Notices and Orders' tab, which prevented the petitioner from responding in time.

Hindustan Pipes Sales,petitioner-assessee,, had challenged the order dated 16.04.2024 issued by the Assistant Commissioner, State Tax, under Section 73 of the GST Act, 2017, creating a demand against it.

The petitioner submitted that the notices were uploaded on the 'Additional Notices and Orders' tab of the GST portal, not on the 'Due Notices and Orders' tab. As a result, they were unaware of the notices and the order and could not appear before the authority or challenge the order in time.

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It was also submitted that in a similar case,Ola Fleet Technologies Pvt. Ltd. v. State of U.P.,decided on 22.07.2024, the Court held that such a lapse justified giving the benefit of doubt to the petitioner and sent the matter back to the authority.

The Departmental counsel did not dispute that the notices and orders were uploaded under the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab. It was also accepted that the issue was already settled in the Ola Fleet Technologies Pvt. Ltd. case.

In the Ola Fleet Technologies Pvt. Ltd. case, the Court noted that the order was not uploaded under the ‘View Notices and Orders’ tab on the GST portal, but under ‘Additional Notices and Orders’. As a result, the petitioner could not respond in time. The Court accepted this explanation, noted that the issue related to the GST portal’s design, and held that the petitioner was entitled to the benefit of doubt.

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Since the tax amount was already deposited, the Court disposed of the petition and allowed the petitioner to file a reply. It directed the authority to issue a fresh notice with at least 15 days’ time and pass a reasoned order thereafter.

The division bench of  Chief Justice Arun Bhansali and Justice Kshitij Shailendra relying on the above judgment, allowed the present writ petition and quashed the order dated 16.04.2024 passed by the Assistant Commissioner, State Tax.The authority was directed to issue a fresh notice with at least 15 days’ clear time and proceed in accordance with law.

To Read the full text of the Order CLICK HERE

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