National Gas Services Vs State of U.P. and 2 others (Allahabad High Court)
Allahabad High Court, in National Gas Services Vs. State of U.P. & Others, quashed an order passed under Section 73 of the GST Act, 2017, due to improper service of notice. The petitioner challenged the order dated 23.07.2024 by the Deputy Commissioner, State Tax, Prayagraj, arguing that the notices were uploaded under the “Additional Notices and Orders” tab on the GST Portal instead of the “Due Notices and Orders” tab. This procedural lapse led to the petitioner being unaware of the notices and unable to contest them within the statutory time frame. The court referred to its prior decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P., where a similar issue was identified, granting relief to the petitioner based on the precedent. The court observed that a technical issue with the GST Portal had prevented proper communication of the notices, and the petitioner deserved the benefit of the doubt.
The court emphasized that proper service of notices is essential for ensuring compliance with natural justice principles. The Department acknowledged the issue, stating that tax officers lack control over how notices appear on the GST Portal, as it is managed by the GST Network (GSTN). Given this, the High Court set aside the impugned order and directed the Assessing Officer to issue a fresh notice with at least 15 days’ clear notice, ensuring proper service in accordance with the law. The ruling reinforces the importance of procedural compliance in GST matters, ensuring that taxpayers receive due notice before any adverse action is taken.
