GST Update

 Desk of CA. Praveen Sharma – 1012 Series (CAPS) 

ANDHRA PRADESH HIGH COURT IN THE CASE OF Vish Wind Infrastructure LLP

The petitioner approached the Court challenging multiple orders issued by the department on the ground that such orders did not contain a valid Document Identification Number (DIN) or reference number, making them legally defective.

The Court noted that it had earlier held in similar matters that absence of a DIN is a serious procedural lapse and such orders cannot be sustained in law. Accordingly, the defect goes to the root of the validity of the proceedings.

However, the department argued that the petition was filed with delay and that the orders had already been served through the GST portal. The petitioner countered this by stating that the orders were not served through conventional means and mere uploading on the portal cannot be treated as effective communication.

The Court acknowledged the practical challenges faced by taxpayers in accessing portal-based communications and observed that in many cases, taxpayers remain unaware of such uploads due to technical or administrative reasons. While ordinarily delay may not be condoned, the Court took a balanced view considering the hardships involved.

It was held that where orders suffer from inherent defects like absence of DIN, relief can be granted even if there is delay, subject to reasonable safeguards.

Accordingly, the impugned orders were set aside and the matter was remanded back to the assessing authority for fresh adjudication after giving proper opportunity of hearing. The relief was made conditional upon the petitioner depositing 20% of the disputed tax within six weeks, which would be subject to the final outcome of the case.

The Court also clarified that the time spent in litigation would be excluded for limitation purposes and all issues remain open for reconsideration.

LINK:CA. Praveen Sharma on Linkedin

Regards

CAPS