GST Update

 Desk of CA. Praveen Sharma – 1057 Series (CAPS) 

 Punjab & Haryana High Court IN THE CASE OF Luxmi Traders & Ors. v. Union Territory of Chandigarh & Ors.

Issue: Whether mere uploading of a Show Cause Notice (SCN) or Order-in-Original under the "View Additional Notices and Orders" tab on the GST portal constitutes valid service under Sections 169 and 146 of the CGST Act.

Mere uploading of an SCN or adjudication order on the GST portal does not automatically amount to valid statutory service under Section 169.

The Court held that www.gst.gov.in has not been specifically notified under Section 146 for service of notices and orders; therefore, portal upload alone is insufficient.

Uploading documents only under the "View Additional Notices and Orders" tab is not an effective mode of communication, as taxpayers may reasonably remain unaware of such uploads.

An automated email merely informing the taxpayer that a document has been uploaded, without attaching the actual SCN or order, does not satisfy the statutory requirement of service.

The Court criticized the GST portal design, observing that locating documents under multiple hidden tabs is akin to a "treasure hunt", defeating the purpose of proper notice.

Principles of natural justice require that taxpayers receive effective notice and a reasonable opportunity of being heard before adverse orders are passed.

Where proper statutory service is absent, the limitation period for filing an appeal under Section 107 does not commence.

Ex parte orders passed solely on the basis of such defective service are liable to be challenged and appropriate relief can be granted by the High Court.

The judgment reinforces that substantive justice must prevail over procedural shortcuts, and tax authorities must ensure legally valid service before enforcing GST demands.

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Regards
CAPS