Case Summary & Key Observations
The petitioner, M/s Bambino Agro Industries Ltd, challenged a show cause notice dated 25.09.2023 and an ex parte demand order dated 08.12.2023 passed under Section 73 of the CGST Act for FY 2017–18.
The core grievance of the petitioner was that the show cause notice and the consequent demand order were not uploaded under the “Due Notices and Orders” tab on the GST portal. Instead, they were uploaded under the “Additional Notices and Orders” tab, due to which the petitioner remained unaware of the proceedings and could not respond or file an appeal within the prescribed limitation period.
The petitioner relied upon earlier Division Bench decisions of the Allahabad High Court, particularly Ola Fleet Technologies Pvt. Ltd. vs State of U.P., wherein the Court had recognised that improper portal communication can deprive an assessee of effective notice.
The State did not dispute the fact that the notices and orders were uploaded under the incorrect tab and fairly conceded that the issue was covered by earlier judgments of the Court.
The High Court held that although service of notices and orders through the GST portal is a legally recognised mode, such service must be effected in a proper and prescribed manner. Uploading notices and orders in a manner that does not make them visible to the assessee under the correct portal tab amounts to ineffective communication.
Accordingly, the Court quashed both the show cause notice and the ex parte demand order and directed the department to issue a fresh notice with at least fifteen days’ clear notice and proceed afresh in accordance with law.
Ratio Decidendi
Service of GST notices and orders through the common portal is valid only when such notices and orders are uploaded in the prescribed and correct manner. Uploading notices under an incorrect portal tab, thereby depriving the assessee of effective knowledge and opportunity to respond, vitiates the entire proceedings. In such cases, ex parte orders cannot be sustained and fresh proceedings must be initiated after proper service.
Practical Takeaway
• GST authorities must ensure that notices and orders are uploaded under the correct portal tab to constitute valid service.
• Assessees can successfully challenge ex parte GST orders if notices were not effectively communicated on the GST portal.
• Limitation periods cannot be enforced against taxpayers when portal communication itself is defective.
• This judgment is especially relevant for cases involving Section 73 proceedings and portal-based communications.
Full Judgment
For a detailed understanding of the factual background, legal reasoning and operative directions issued by the Allahabad High Court, readers are advised to refer to the complete judgment available in the official PDF.