Shree Shyam Trading Co. Vs Union of India (Patna High Court)
The Patna High Court has quashed an ex parte assessment order and subsequent demand against Shree Shyam Trading Co. for the Financial Year 2017-18, citing violations of natural justice and improper notice service under the Bihar Goods and Services Tax (BGST) Act, 2017. The ruling, delivered in the writ petition filed by the trading company, underscores the mandatory nature of personal hearings and valid notice dissemination by tax authorities.
Shree Shyam Trading Co. challenged the assessment order dated August 31, 2023, passed under Section 73(9) of the BGST Act, arguing that it was issued without granting any opportunity for a personal hearing as mandated by Section 75(4) of the Act. The petitioner further contended that no show cause notice or the assessment order itself was properly served through any valid mode as stipulated under Section 169 of the BGST Act. The company asserted that merely uploading notices under “Additional Notices and Orders” on the GST portal does not constitute valid service.
Conversely, the counsel for the respondents argued that the petitioner was given an option to appear in the notice, and their failure to do so negated their claim under Section 75(4). They also maintained that uploading proceedings on the portal complied with Section 169 of the GST Act.
