HC Quashes GST Demand Over Improper Service on Portal; Case Remanded for Fresh Consideration

The Allahabad High Court set aside the GST notice and demand order against the company after finding they were uploaded under the wrong GST portal tab. Remanded the matter back to the tax authorities for fresh consideration.

M/S Raja Constructions, through its proprietor, Shabahat Husain, and another, had filed the present writ petition in the Allahabad High Court, challenging a notice dated September 24, 2022, and an order dated February 27, 2025, issued by the Assistant Commissioner, State Goods and Service Tax, Lucknow Sector-II. The impugned order had imposed a demand against the petitioner for the financial year 2020-21.

The assessee claimed that the GST notice and order issued addressing it was uploaded on the “Additional Notices and Orders” tab of the GST portal instead of the “Due Notices and Orders” tab. Because of this, it was not aware of the proceedings and could not appear before the concerned authority. Also, could not file an appeal challenging the impugned order within the statutory time limit.

When the court analysed the facts of the case, it noted that a case with a similar issue had already been decided in Ola Fleet Technologies Pvt. Ltd. v. State of U.P., where the court held that the assessee should be given the benefit of the doubt in case notices are not served properly under the correct GST portal tab. The department also did not raise any argument objecting to the claim of the assessee that the notices were uploaded under the wrong tab.

Referencing an earlier judgement concerning a similar issue, the court quashed the impugned notice dated September 24, 2022, and an order dated February 27, 2025. Additionally, the case was sent back to the tax authorities for fresh consideration, and they were directed to issue a fresh notice giving at least 15 clear days to the assessee.