GST Notice via WhatsApp Not a Valid Mode of Service u/s 169, Even During COVID-19: Kerala HC [Read Order]
Kerala HC rules that GST notices sent via WhatsApp are not valid under Section 169, setting aside a vehicle confiscation done without a proper statutory notice.
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In a recent ruling, the Kerala High Court held that GST notices sent via WhatsApp are not a valid mode of service under Section 169 of the CGST Act, even if used during the COVID-19 period.
Mathai M.V., a truck owner, filed a writ petition challenging the detention and confiscation of his vehicle by the State GST authorities in Ernakulam. The authorities had alleged tax evasion by the consignor and confiscated Mathai’s truck under Section 130 of the CGST Act, 2017, claiming that notice had been served to the petitioner via WhatsApp before confiscation.
The petitioner’s counsel argued that he was neither involved in the alleged tax evasion nor had any knowledge of it. They argued that the truck was only hired for transportation and that the confiscation was illegal as no valid notice under Section 130 was served in accordance with the procedure under Section 169 of the CGST Act.
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The GST department’s counsel argued that the petitioner was informed of the proceedings through WhatsApp and that the confiscation was valid as the petitioner had been contacted during the process. The counsel argued that the notice through WhatsApp was sufficient to proceed with the confiscation under the circumstances.
A division bench led by Chief Justice Nitin Jamdar and Justice Basant Balaji observed that communication through WhatsApp may have been used during the COVID-19 pandemic, but it is not a recognised statutory mode of serving notice under Section 169 of the CGST Act.
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The court observed that service of notice is a mandatory requirement before confiscating goods or conveyances under Section 130, and the department’s failure to follow the statutory procedure rendered the confiscation illegal. The court set aside the confiscation of the petitioner’s truck, which had been seized by the GST department without issuing a proper statutory notice.
The court allowed the writ appeal. The matter was remanded to the department with a direction to issue a proper notice to the petitioner as required under Section 130 of the CGST Act and to pass fresh orders after providing the petitioner an opportunity of hearing. The court clarified that it had not examined the merits of the confiscation itself and that the authorities could proceed in accordance with the law after serving a valid notice.
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