Online Notice Rejecting GST TRAN-1 for ITC on Excise Duty challenged only after 2 Years: Kerala HC upholds Validity of SCN [Read Order]
The High Court held that serving notice upon the GST online portal is a valid form of service, and the petition challenging the order should be filed within the time limit.
The Kerala High Court recently dismissed a writ petition challenging the rejection of an application in GST TRANS-1 for claiming input tax credit (ITC) of excise duty on the closing stock, after noting that the challenge was initiated two years after the assessment order was passed under section 73 of the CSGT Act, 2017.
The petitioner, Dhanyamol V, being the proprietrix of Abhinaya Digital Solutions is a registered dealer under the Central Goods and Services Tax Act,2017 and Kerala Goods and Services Tax Act, 2017.
The petitioner had filed an application in GST TRANS -1, claiming ITC of excise duty on closing stock held on 30.06.2017. The assessment order was passed on 28.12.2023 by the respondent State Tax Officer under section 73 of CGST Act, rejecting the application of the petitioner and the order was posted on the online GST platform.
The petitioner was not aware of the order being posted on the GST portal and was made aware of the same only when the arrear notice demanding outstanding dues for the year 2017-2018 was received by her.
No challenge was made by the petitioner by way of appeal, until this present writ petition which was filed after more than two years from the date of issuance of the assessment order.
V. Devananda Narasimha, Sheeja D.K., Asha K.Shenoy appearing for the petitioner reiterated their submissions that the petitioner was not aware of the assessment order on the online portal. The petitioner was aware of the order only upon the receipt of Arrear notice.
However, they did not dispute that as per Sec.169 of the CGST Act, uploading the order on the portal is treated as valid service of notice.
The petitioner contended that the application was rejected without giving an opportunity of being heard.
Also read: GST RegistrationCancelled for ITC Violation Without Reply: Calcutta HC Allows Revocation Plea
P.R.Sreejith and Reshmitha R Chandran appeared for the respondent Revenue.
In the light of fact and circumstances, Justice Ziyad Rahman A.A. noted that due to the delay and lapses from the petitioner in invoking the statutory remedies or Constitutional remedies for a period more than two years, there arose no justifiable reasons to entertain the writ petition.
Accordingly, the court dismissed the petition.
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