Gupta Traders Vs State of U.P. and Another (Allahabad High Court)
In a recent ruling, the Allahabad High Court has quashed a GST demand order against a taxpayer, Gupta Traders, citing improper electronic communication via the GST portal. The court’s decision was based on the finding that the tax authority had uploaded the relevant notices and the final order in an unconventional section of the portal, which effectively prevented the assessee from receiving timely notification.
The case, Gupta Traders Vs State of U.P. and Another, centered on a demand order dated March 30, 2024, issued by the Assistant Commissioner, State GST, Saharanpur, under Section 73 of the Goods and Service Tax Act, 2017. The petitioner’s counsel argued that the notices leading up to the order, as well as the final order itself, were uploaded under the ‘Additional Notices and Orders’ tab on the GST portal. This, they contended, was an improper procedure, as these critical communications should have appeared in the ‘View Notices and Orders’ tab, which taxpayers regularly monitor.
Due to the notices being placed in an obscure location, the petitioner claimed they were completely unaware of the ongoing proceedings. This lack of awareness meant they could neither participate in the assessment process nor file an appeal against the demand order within the statutory period of limitation.
