Uploading Summary of SCN on GST Portal Solely Not Fulfills S. 169: Patna HC Sets aside Order [Read Order]

The Patna High Court has held that solely uploading a show-cause notice ( SCN ) on the GST portal is not sufficient service under Section 169 of the Bihar Goods and Services Tax ( BGST ) Act, 2017.

The petitioner, M/s Binod Traders, had challenged the assessment and demand raised under Section 73 of the BGST Act for the financial year 2017-18, arguing that no valid service of notice was effected and no opportunity of hearing was granted.

Also read: From Email to GST Portal/Newspaper: GST Notice Communication u/s 169(1) Refined by Madras HC Decision

The SCN was only uploaded under the “Additional Notices and Orders” tab on the GST portal, without being served by post or any other recognized mode of communication as required under the law.

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The Court noted that this procedural lapse led to the petitioner remaining unaware of the GST SCN and, consequently, not filing a reply. The subsequent ex parte order was passed by the Joint Commissioner, State Tax, Siwan Circle, and a delayed appeal filed by the petitioner was dismissed summarily.

Also read: Personal Delivery or E-mail Notice of GST order should be Provided before issuing in GST Portal or News paper: Madras HC [Read Order]

The court, while reiterating the principles of natural justice, observed that Section 169 mandates that notices be served through prescribed modes, such as registered post or personal delivery. The failure to serve the SCN through any valid mode rendered the assessment proceedings void.

The division bench of “Co-ordinate Bench has taken a decision uploading of show-cause notice in portal would not suffice registered post under acknowledgment and other modes of communication is required to be adhered. The same issue is involved in the present lis to the extent summary of show-cause notice dated 11.08.2023 has been uploaded in a portal , resultantly petitioner was unable to file his reply. Thereafter, the concerned authorities have proceeded to pass consequential orders. In the light of these facts and circumstances, and for non-compliance of Section 169 of Bihar Goods and Service Act, 2017, impugned orders dated 20.09.2023 & 08.05.2024 vide Annexure-P/15 & Annexure-P/19 are set aside.”

Accordingly, the bench of Justice P. B. Bajanthri and S. B. Pd. Singh set aside the impugned orders and remanded the matter to the assessing authority, directing it to issue a fresh SCN, grant the petitioner ample opportunity to reply and be heard, and pass a reasoned order within six months. The petitioner was also directed to cooperate in the fresh proceedings.

Also read: GST Assessment Order Communicated through Common Portal is Valid Service: Kerala High Court Dismisses Appeal [Read Order]

To Read the full text of the Order CLICK HERE

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