Sudarshan Beopar Company Limited Vs Union of India and 3 others (Allahabad High Court)
The Allahabad High Court allowed the writ petition filed by Sudarshan Beopar Company Limited against the order dated 22 November 2023 passed by the Deputy Commissioner, Commercial Tax, Sector-02, Chandauli under Section 73 of the Goods and Services Tax Act, 2017, whereby a demand had been created against the petitioner.
The petitioner submitted that the respondent authorities had neither issued a personal hearing notice nor provided intimation regarding the proceedings. According to the petitioner, as the proceedings had been initiated after expiry of the prescribed limitation period, it was under the reasonable impression that the proceedings had been dropped. It was subsequently found that a reminder and the impugned order had been uploaded on the GST Portal under the “Additional Notices and Orders” tab, rather than the “Due Notices and Orders” tab. The petitioner contended that it was therefore unaware of the notice, reminder and order and could neither appear before the authority nor challenge the orders within the limitation period.
The petitioner relied on the Allahabad High Court’s decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, where a similar issue concerning notices and orders appearing under the “Additional Notices and Orders” tab had been considered. The Department did not dispute that the reminder notice and order in the present case had been uploaded under that tab and acknowledged that the issue was covered by the Ola Fleet Technologies Pvt. Ltd. judgment.
Following that decision, the High Court allowed the writ petition and quashed and set aside the impugned order dated 22 November 2023. The Court permitted the Assessing Officer to issue a fresh notice to the petitioner, providing at least 15 days’ clear notice, in the prescribed manner and in accordance with law. Further proceedings could thereafter take place on the basis of the fresh notice.
Cases Discussed
- Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others (Allahabad High Court), Writ Tax No. 855 of 2024 decided on 22.7.2024
- M/s Mohini Traders Vs. State of U.P. and Another (Allahabad High Court), Writ Tax No.551 of 2023, Neutral Citation No.2023: AHC:115008-DB
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. This petition is directed against order dated 22.11.2023 passed by the Deputy Commissioner, Commercial Tax, Sector-02, Chandauli under Section 73 of the Goods and Services Tax Act, 2017 whereby demand has been created against the petitioner.
2. Submissions have been made that the respondent authorities have neither issued any notice of personal hearing nor issued any intimation pertaining to the present proceedings and therefore, as the present proceedings were initiated after the expiry of the period of limitation prescribed, petitioner was under reasonable impression that the proceedings have been dropped. However, after a lapse of about two months, a reminder and order impugned came to be uploaded on ‘Additional Notices and Orders’ Tab of the G.S.T. Portal, which is evident from Annexure No.- SA-1 of supplementary affidavit and consequently, the petitioner being unaware of issuance of the said notice and reminder as well as passing of the orders, could neither appear before the authority nor question the validity of the impugned orders within the period of limitation.
3. Submission has been made that this Court in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. & 2 others, Writ Tax No. 855 of 2024 decided on 22.7.2024 taking note of the said aspect of the matter wherein notices have not been uploaded on the ‘Due Notices and Orders’ and instead uploaded on ‘Additional Notices and Orders’, came to the conclusion that the petitioner is entitled to the benefit of doubt and consequently, the matter has been remanded back to the authority.
4. Learned counsel appearing for the Department based on the material available on record does not dispute the contentions raised pertaining to uploading of the reminder notice and order on the ‘Additional Notices and Orders’ Tab instead of ‘Due Notices and Orders’ Tab and the fact that the issue as raised is covered by judgement in the case of Ola Fleet Technologies Pvt. Ltd (Supra).
5. In the case of Ola Fleet Technologies Pvt. Ltd (Supra) a co-oridiante Bench of this Court inter alia observed and came to the following conclusion:-
“4. Ultimately, vide last order dated 05.04.2024 the dispute between the parties boiled down to the issue due communication of the impugned order dated 12.07.2023. The petitioner claims that the same was not uploaded in the manner required inasmuch as the impugned order does not show up on the asseseess portal under the tab “view notices and orders”. Rather, it reflects under the other tab for “additional notice and orders”.
5. Thus, according to the learned counsel for the petitioner the petitioner could not seek appropriate remedy against that order, within limitation. Reliance is placed on an earlier order of the Court in Writ Tax No.551 of 2023 (M/s Mohini Traders Vs. State of U.P. and Another) decided on 03.05.2023 [Neutral Citation No.2023: AHC:115008-DB].
6. On the other hand upon written instructions received learned Standing Counsel would contend that the assessing officer is not to blame for any error being cited by the assessee. Referring to the web portal available to the assessing officer, it had been indicated that there is no option/choice available to the assessing officer to upload the order in the manner that it may reflect under any one of the particular tabs visible to the assessee. On query made, Shri Ankur Agarwal fairly states that if it all issue may have to be addressed by the GST Network a separate entity constituted to design maintain and run the web portal.
7. At present, it does appear that the petitioner is entitled to a benefit of doubt. No material exist to reject the contention being advanced that the impugned order was not reflecting under the tab “view notices and orders”. On merits, as noted in the earlier orders an other dispute exists whether all replies and annexures to the replies as filed by the assessee were displayed to the assessing officer and whether those have been considered. We find, no useful purpose may be served for keeping this petition pending or calling for a counter affidavit or even relegating the petitioner to the available statutory remedy. The entire disputed amount is lying in deposit with the State Government. Therefore, there is no outstanding demand. Accordingly, the writ petition is disposed of, with a direction, the assessee may treat the impugned order as the final notice and submit his written reply within a period of two weeks. Thereupon the assessing officer may issue a fresh notice to the petitioner in the manner prescribed with at least fifteen days clear notice. The petitioner undertakes to appear on the date fixed. Appropriate reasoned and speaking order may be passed within a further period of one month from the date of service of notice on the petitioner.”
6. In view of the submissions made and the judgement in the case of Ola Fleet Technologies Pvt. Ltd (Supra), the writ petition filed by the petitioner is allowed. The order impugned dated 22.11.2023 passed by the Deputy Commissioner, Commercial Tax, Sector-02, Chandauli (Annexure-1 to the writ petition) is quashed and set aside.
7. The Assessing Officer may issue a fresh at least 15 days clear notice to the petitioner in the manner prescribed in accordance with law and based on the said notice, further proceedings may take place.
