In a significant relief for GST taxpayers, the Allahabad High Court has clarified an important issue relating to communication of GST notices and orders through the GST portal.
The case involved M/s Bambino Agro Industries Ltd, against whom a show cause notice and an ex-parte demand order were passed by the GST department under Section 73 of the GST law for the financial year 2017–18. The taxpayer challenged these actions before the High Court.
The main grievance of the taxpayer was not about the tax demand itself, but about the manner in which the GST department communicated the proceedings. The show cause notice and the demand order were uploaded on the GST portal under the “Additional Notices and Orders” tab instead of the commonly used “Due Notices and Orders” tab.
Because of this incorrect placement on the portal, the taxpayer remained unaware of the notice and the order. As a result, no reply could be filed and no appeal could be preferred within the limitation period. The entire demand was passed ex-parte, without giving the taxpayer an effective opportunity of hearing.
The High Court examined earlier judgments on similar issues and observed that merely uploading notices on the GST portal is not enough. The communication must be effective and visible in a manner that a reasonable taxpayer can actually notice and act upon it.
The Court noted that when notices and orders are uploaded under the wrong portal tab, the taxpayer cannot be blamed for missing them. Such defective communication defeats the purpose of fair procedure and natural justice.
Accepting these arguments, the Allahabad High Court quashed both the show cause notice and the ex-parte demand order. The Court directed the GST department to issue a fresh notice with at least fifteen days’ clear time and proceed again in accordance with law.
This judgment is important for taxpayers facing ex-parte GST orders based solely on portal uploads. It reinforces the principle that limitation periods and adverse consequences cannot be imposed unless notices are properly and effectively communicated.
Taxpayers who have received GST orders without seeing any notice on their regular portal dashboard may rely on this ruling to challenge such actions.