Koduvayur Constructions Vs Assistant Commissioner-Works Contract (Kerala High Court)
Introduction: Delve into the recent judgment by the Hon’ble Kerala High Court in the case of Koduvayur Constructions vs Assistant Commissioner-Works Contract. The court addressed the crucial issue of the validity of serving assessment orders on the GST portal and its impact on the taxpayer’s responsibility.
Detailed Analysis: M/s. Koduvayur Constructions, a registered dealer under the CGST Act, faced a cancellation of its GST registration. Despite believing it had no further tax liability, the Assistant Commissioner issued an assessment order demanding payment. The petitioner argued that the notice served through the GST portal was not valid, challenging the entire proceedings.
The court, citing Section 169 of the CGST Act, emphasized various methods of serving notices, including making them available on the common portal. It noted that the petitioner’s duty was to check and verify the portal for any communication from the Revenue Department. The court dismissed the petitioner’s contention that the assessment order was not served in a valid manner, stating it was the petitioner’s fault for not checking the GST portal.
Conclusion: The Kerala High Court’s decision reaffirms the validity of serving assessment orders on the common GST portal and underscores the taxpayer’s responsibility to monitor the portal for important communications. The ruling in the Koduvayur Constructions case highlights the significance of digital communication in tax matters and establishes that non-compliance with portal notices can’t be used to challenge the validity of assessments.
This article provides a detailed analysis of the Kerala High Court’s judgment in the Koduvayur Constructions case, shedding light on the acceptance of GST portal notices as a valid mode of service. It serves as a valuable resource for understanding the legal implications of digital communication in the context of tax assessments.
The Hon’ble Kerala High Court in Koduvayur Constructions v. Assistant Commissioner-Works Contract [WP(C) No. 21212 of 2023 dated August 07, 2023] held that, it is assessee’s responsibility to check the GST portal for any notice or order that had been served on it the assessment order was not served in a valid manner was untenable.
Facts:
M/s. Koduvayur Constructions (“the Petitioner”) a registered dealer under the Central Goods and Services Tax Act, 2017(“the CGST Act”) whose GST registration was cancelled by the order dated October 21, 2021 w.e.f. September 01, 2021. The Petitioner was under the impression that it had no liability to pay the taxes under the GST law.
However, the Assistant Commissioner (“the Respondent”) issued an assessment order on the common portal dated October 14, 2022 (“the assessment Order”) demanding payment of INR 19,22,566/-.
The petitioner alleges that it was not served with proper notice as provided under the CGST Act. Hence, the entire proceedings leading to cancellation of GST registration and the same is liable to be quashed.
Issue:
Whether service of an assessment order on common GST portal after cancellation of GST registration can be considered an effective mode of service of order under GST law?
Held:
The Hon’ble Kerala High Court in WP(C) NO. 21212 of 2023 held as under: –
