Calcutta HC Sets Aside GST Notices & Orders Due to Procedural Violations in Issuance

St. Xavier’s College Calcutta Alumni Association Vs. Deputy Commissioner of Revenue, CGST and Others (Calcutta High Court)

Calcutta High Court recently adjudicated the case of St. Xavier’s College Calcutta Alumni Association Vs Deputy Commissioner of Revenue CGST and Ors, addressing the procedural irregularities in GST notice communication. The petitioner, a charitable institution comprising alumni of St. Xavier’s College, Kolkata, challenged an intimation of liability dated May 18, 2023, a Show Cause Notice dated June 9, 2023, and an order dated July 12, 2023. These documents, issued under Section 73 of the GST Act, were uploaded to the GST portal under the “Additional Notices and Orders” tab but were not communicated through conventional channels. The petitioner argued that such non-standardized communication deprived them of a proper opportunity to respond, prompting their plea for quashing the aforementioned documents.

The Court observed that while the GST portal provides various modes for issuing notices, reliance solely on the “Additional Notices and Orders” tab without proper communication violated procedural norms. Consequently, the Court set aside the notices and orders, emphasizing the need for compliance with due process in future communications. However, it granted the authorities liberty to reinitiate proceedings against the petitioner, provided the requisite legal procedures are followed. This ruling underscores the importance of procedural fairness and effective communication in administrative processes under GST law.

Petitioner was represented by Ms. Sutapa Roy Choudhury, Adv. and Ms. Aratrika Roy, Adv.

FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT

The Court: Learned senior Counsel appearing for the petitioner submits that the petitioner is a law-abiding charitable and philanthropic Institution of the ex-students of St. Xaviers College, Kolkata and is registered under the GST Act having GSITIN/ID 19AABTS5875L1ZP. Learned Senior Counsel further submits that the petitioner was issued with intimation of liability dated 18t^h May, 2023, Show-cause Notice dated 9t^h June, 2023 and order dated 12^th July, 2023 under Section 73 of the said Act, in the portal of GST, “Additional Notices and Orders” but was not communicated to the petitioner through proper mode of communication.

Learned counsel appearing for the petitioner further prays for quashing of the intimation, Show Cause Notice and Order dated 12t^h July, 2023.

Learned Counsel appearing for the respondent authorities submits that the GST portal is designed in such a fashion that the show cause notice, intimation and orders may appear in “Notices & Orders” or at “Additional Notices and Orders” and this is not dependent on the decision of the respondent authorities. Moreover, all the Intimation Show Cause Notices and orders were served properly to the petitioner.

Heard learned Counsel for the parties.

As the Intimation dated 18^th May, 2023, Show Cause Notice dated 9th June, 2023 and the Order dated 12t^h July, 2023 were all placed by the respondents on the GST portal in the “Additional Notices and Orders” tab and were not communicated properly to the petitioner through the normal mode of communication, the above intimation Show Cause Notice and Order dated 12^th July, 2023 are quashed and set aside.

However, the respondent authorities are at liberty to intimate the petitioners of any proceedings against the petitioners after following the due course of law.

The petition stands disposed of.