Subhra Baral Vs Deputy Commissioner of Revenue (Calcutta High Court)
Summary: The Calcutta High Court allowed the writ petition filed by Subhra Baral challenging the adjudication order dated 28.07.2024 and the appellate order dated 29.05.2025 passed under Section 107 of the West Bengal Goods and Services Tax Act and Section 107 of the Central Goods and Services Tax Act, 2017, whereby the petitioner’s appeal had been dismissed solely on limitation. The petitioner submitted that Show Cause Notice in Form GST DRC-01 No. ZD190524017416E dated 12.05.2024, demanding tax, interest and penalty, had been uploaded on the GST portal only under the “Additional Notice and Orders” tab. According to the petitioner, no separate intimation was received, due to which the notice remained unnoticed and no reply could be filed.
The petitioner stated that the adjudication order dated 28.07.2024 came to his knowledge only when his accountant checked the common portal in March 2025. The appeal filed thereafter under Section 107 was dismissed on limitation without examination on merits. The State contended that ample opportunities had been granted and the appeal was correctly rejected as time-barred. The High Court, however, found that the petitioner had made out a prima facie case. It specifically observed that uploading the show cause notice only under the “Additional Notice and Orders” tab without separate intimation had prevented the petitioner from replying and constituted a violation of natural justice. Since the appellate authority had dismissed the appeal only on limitation and had not considered the merits, the Court held that interference was warranted in the peculiar facts of the case.
The High Court consequently quashed and set aside both the appellate order dated 29.05.2025 and the adjudication order dated 28.07.2024, and also quashed the consequential bank attachment. Respondent No.1 was directed to revisit the issue by considering on merits the grounds taken in the petitioner’s appeal, grant an opportunity of hearing and pass a fresh reasoned adjudication order in accordance with law within 12 weeks. The decision was directed to be communicated to the petitioner within one week thereafter. The writ petition was accordingly disposed of.
FULL TEXT OF THE CALCUTTA HIGH COURT ORDER
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 28.07.2024 passed by the respondent No.1 and the appellate order dated 29th May, 2025 passed by the respondent no.2 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 No. ZD190524017416E dated 12.05.2024 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 came to know above the adjudication order dated 28.07.2024 only after the accountant checked the common portal in the month of March, 2025.
iv. 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.
v. 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, 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 29.05.2025 and the adjudication order dated 28.07.2024 are hereby quashed and set aside. The consequential bank attachment is also hereby quashed and set aside.
b. Respondent no.1 is directed to revisit the issue by considering the grounds taken in appeal preferred by the petitioner on merits.
c. Respondent no.1 shall afford an opportunity of hearing to the petitioner and pass a fresh reasoned adjudication order in accordance with law within 12 weeks from date. 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.
