Portal-Only Service of GST Notices Invalid, High Court Directs Reassessment with Conditions

The Andhra Pradesh High Court held that GST notices and assessment orders uploaded only on the portal, without proper direct communication, violate principles of natural justice. It set aside the assessment and remanded the matter for reassessment. However, the taxpayer was directed to deposit 20% of the disputed tax within six weeks as a condition.

Backstory

Veeranjaneya Pulverisers (petitioner) was assessed for taxes for three separate periods between 2019 and 2022. After which, the authorities issued attachment notices.

But the petitioner claimed that neither the notices nor the orders were issued to them. The petitioner further said that they only became aware of the proceedings after receiving a physical notice.

Before the court, the petitioner argued that the uploading of notices and assessment orders on the portal, without any direct intimation, was improper and violated the principles of natural justice.

The court observed that many taxpayers may not have the technical ability to use the online portal properly, which caused difficulties in receiving and responding to notices.

Since both the notices and the assessment order were only uploaded on the portal without any proper alerts being sent to the taxpayer, the court felt the situation was unfair and against the principles of natural justice. Therefore, it set aside the assessment order and sent the matter back for fresh consideration, ensuring proper procedure under GST laws is followed.

At the same time, to balance the situation, the court directed the taxpayer to first deposit 20% of the disputed tax amount within six weeks. The writ petition was then allowed, and the case was sent back for reassessment.