Just Uploading GST Notice on Portal Not Valid Service: High Court

Just Uploading GST Notice on Portal Not Valid Service: High Court

The assessee received multiple notices and final orders from the GST authorities under Section 74 of the CGST/UPGST Act, alleging wrongful availment of Input Tax Credit (ITC) based on a mismatch and suspected fraud. The petitioner argued that the notices lacked sufficient evidence, were ambiguous, and failed to specify the grounds for claiming fraud under Section 74. The assessee maintained his case by arguing that the show cause notice was neither served by email nor uploaded under the section of the GST portal. The petitioner held that service by placing the said notice under the tab “Additional Notices and Orders,” did not amount to valid service of notice.

Issue Raised: Whether uploading a show cause notice under the “Additional Notices and Orders” tab of the GST portal constitutes valid and effective service of notice to the assessee.

Hon’ble Court’s Decision: The Division Bench, the High Court allowed the petition and found merit in the arguments made by the petitioner.  The Court agreed with the petitioner’s contentions and the precedent cited, i.e., Ola Fleet Technologies. The Court held that mere placement of a notice under “Additional Notices and Orders” does not amount to valid service under the GST regime. It emphasised that valid service must be clear, accessible, and aligned with statutory provisions. In the absence of valid notice, the assessee was deprived of the opportunity to respond, rendering the order unsustainable. Accordingly, the impugned order dated April 28, 2024 was quashed. The Court directed the Assessing Authority to issue a fresh show cause notice within two weeks and proceed afresh in accordance with the law.

To Read Judgment, Download PDF Given Below