SCN u/s 73 of GST Act Not Received due to Portal Issues: Calcutta HC Permits to Approach Appellate Authority [Read Order]

The Calcutta High Court directed the petitioner assessee to challenge the order before the appellate authority as the failure to Receive show cause notice ( SCN ) under section 73 of Central Goods and Service Tax ( CGST ) Act 2017  was due to GST Portal Issue.

Mitali Saha, the petitioner filed the writ petition challenging the notifications issued under Section 168A of the CGST/WBGST Act, 2017. The petitioner submitted that he does not want to proceed with the said challenge. Since the petition is now confined to the challenge of the show cause notice issued under Section 73 of the said Act.

Since, neither the show cause notice nor the adjudication order issued under Section 73 and Section 73 (9) of the said Act, had been uploaded in the "view notices and orders" section of the portal, the uploading of the notice dated 6th April 2023 and the order dated 6 December 2023, in the portal, in other section does not constitute service of such notice or order on the petitioner.

According to him, the show cause notice issued under Section 73 of the said Act and the order issued under Section 73(9) of the said Act were uploaded on the "view additional notices and orders" section of the portal. The complex nature of the portal, before the same being redesigned had made it extremely difficult for the registered taxpayers to access information from the portal.

For reasons as aforesaid, the petitioner had been denied the opportunity to appropriately respond to the same and accordingly, an ex parte order had been passed. He submitted that in the facts and circumstances of the instant case, the adjudication order should be set aside since the same had been passed in violation of the principles of natural justice.

Further, by drawing the attention of the Court to the notice in Form GST DRC 13 dated 6th May 2024 it was submitted that the respondents had in pursuance to the ex parte order purported to attach the petitioner's bank account. The fact described above had come to light from the disclosure made by the petitioner's banker.

Mr. Siddiqui, advocate appearing for the respondents, on the other hand, submitted that the petitioner was repeatedly informed concerning service of notices including the service of show cause notice under Section 73 of the said Act. By referring to the aforesaid email communications he submitted that the emails categorically record the exact location in the portal where the said notice is available. If the petitioner had chosen to overlook the same, the respondents cannot be made responsible thereof.

It was argued that the show cause notice issued under Section 73 of the said Act was not uploaded in the "view notices and orders" section of the portal. By email communications, the petitioner was informed concerning the location of the show cause notice on the portal. Such a fact would corroborate the email communications which remain uncontroverted.

Since there was some confusion concerning uploading the show cause and the order and especially taking into consideration the fact that the dashboard of the portal has been re-designed, the single bench of Justice Raja Basu Chowdhury viewed that the petitioner should be permitted to challenge the aforesaid adjudication order dated 6th December 2023 passed under Section 73(9) of the said Act before the appellate authority. The petitioner can approach the appellate authority within 30 days from the date and file an appeal along with an application for condonation of delay, the appellate authority, by condoning the delay shall hear out and dispose of the appeal on merits by passing a reasoned order, within 12 weeks

To Read the full text of the Order CLICK HERE

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