Information Technology Act Provisions on Electronic Service cannot be Applied to Determine Valid Service under GST Act: Allahabad HC [Read Order]

In a recent ruling, the Allahabad High Court held that provisions of the Information Technology Act, 2000 relating to electronic records and deemed receipt cannot be applied to determine valid service or communication of notices and orders under the Goods and Services Tax (GST) Act.

Bambino Agro Industries Ltd., the petitioner along with other assessees, filed writ petitions before the Allahabad High Court challenging adjudication orders passed against them under Sections 73 and 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017

The petitioners’ counsel stated that the revenue authorities claimed to have served the show cause notices and adjudication orders only by uploading them on the GST Common Portal and by sending automated email or SMS alerts. According to the petitioners, no physical service was ever effected and they became aware of the orders only when recovery proceedings were initiated.

The petitioners’ counsel argued that mere uploading of notices or orders on the GST portal does not amount to “communication” within the meaning of Section 107 of the GST Act. It was argued that the GST Act provides a complete mechanism for service under Section 169, and that the deeming provisions of the Information Technology Act cannot be imported to presume service or start the limitation period for filing appeals.

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