Sarat Chandra Ghorai Vs State of West Bengal & Ors. (Calcutta High Court)
Summary: The Calcutta High Court considered a writ petition challenging the adjudication order dated 06.04.2024 and the appellate order dated 03.12.2025 passed under Section 107 of the West Bengal Goods and Services Tax Act and the Central Goods and Services Tax Act, 2017, whereby the petitioner’s appeal had been dismissed on the ground of limitation. The petitioner submitted that a show cause notice in Form DRC 01 dated 09.12.2023 demanding tax, interest and penalty had been uploaded on the GST portal under the “Additional Notice and Orders” tab and that no actual intimation had been received, preventing the petitioner from responding to the notice. The petitioner further contended that the proceedings and impugned orders violated principles of natural justice and the statutory procedure.
The State respondents opposed the petition, submitting that the petitioner had been given ample opportunities through DRC 01A dated 20.11.2023, DRC 01 dated 09.12.2023 and a reminder dated 26.02.2024, and therefore the appeal had rightly been dismissed as time-barred. The Court, after considering the submissions and records, found that the petitioner had made out a prima facie case.
It specifically observed that the show cause notice had only been uploaded under the “Additional Notice and Orders” tab and that no separate intimation had been given, resulting in the petitioner being unable to reply to the notice. The Court held that this constituted a violation of natural justice. Since the appeal had been dismissed by the appellate authority only on limitation and not on merits, the Court held that, considering the peculiar facts, interference was warranted in the interests of justice.
Accordingly, the Court quashed and set aside both the appellate order dated 03.12.2025 and the adjudication order dated 06.04.2024. The petitioner was directed to file a reply to the show cause notice dated 09.12.2023 before the concerned authority within two weeks. The authority was directed to consider the reply within four weeks of receipt, pass a fresh reasoned and speaking order in accordance with law after affording an opportunity of hearing, and communicate the decision within one week thereafter.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
1. Affidavit of service filed in Court today be kept with the record.
2. The present petition has been filed challenging inter alia, the legality and validity of the adjudication order dated 06.04.2024 passed by the respondent No. 3 and the appellate order dated 03.12.2025 passed by the respondent no.4 under Section 107 of the West Bengal Goods and Services Tax Act(hereinafter referred to as the said ‘WBGST Act’) and the Central Goods and Services Tax Act, 2017(hereinafter referred to as the said ‘CGST Act’), whereby the appeal of the petitioner has been dismissed on ground of limitation.
3. Learned counsel for the petitioner submits as follows;
i. That a show cause notice in Form DRC 01 dated 9.12.2023 has been issued to the petitioner demanding tax, interest and penalty.
ii. That said notice has been uploaded on the GST portal under the tab ‘Additional Notice and Orders’. Due to this, the petitioner did not get any actual intimation and hence could not respond to the show cause notice.
iii. That the petitioner preferred an appeal before the appellate authority under Section 107 of the said Act but the same has been dismissed solely on the ground of limitation, without considering the merits.
iv. That the entire proceedings and the impugned order are contrary to law and have been passed in violation of principles of natural justice and without due compliance with the procedure prescribed under the said Act.
4. Learned counsel appearing for the State respondents opposed the writ petition and submitted since the petitioner has been granted ample opportunities to defend his case, by way of issuance of DRC 01A issued on 20.11.2023, DRC01 issued on 09.12.2023 and reminder issued on 26.2.2024, the appeal has been rightly dismissed on limitation.
5. Having heard the parties and upon perusing the records made available this Court observes as follows;
i. The petitioner has been able to make a prima facie case.
ii. The fact that show cause notice has been only uploaded under the ‘tab Additional Notice and Orders’ and no separate intimation has been given therefore the petitioner has been unable to reply to the same. This constitutes a violation of natural justice.
6. Since the petitioners appeal has been dismissed by the appellate authority only on the ground of limitation and not on merits, considering the peculiar facts of the case, interference by this Court is warranted in ends of justice.
7. In view of the above this Court directs as follows:
a. The appeal order dated 03.12.2025 and the adjudication order dated 06.04.2024 are hereby quashed and set aside.
b. The petitioner is directed to file a reply to the show cause notice dated 09.12.2023 before the concerned authority within two weeks from date. Such reply shall be considered within four weeks from the date of receipt of the reply by passing a fresh reasoned and speaking order in accordance with law upon affording an opportunity of hearing to the petitioner. Such decision shall be communicated to the petitioner within a week thereafter.
8. With the above observations and directions this writ petition stands disposed of.
9. Since no affidavit in opposition has been called for, the allegations contained in the writ petition are deemed to have been denied and not admitted.
10. Urgent Photostat certified copy of this order be supplied to the parties, if applied for, as early as possible.
