Facts of the Case

Sensation Infracon Pvt. Ltd., holding GSTIN 36AASCS5503K1ZQ, was subjected to proceedings under Section 73 of the CGST Act, 2017 for FY 2020-21 via show cause notice dated 27.11.2024, culminating in an order-in-original dated 28.02.2025 imposing liability of Rs.96,30,225.26. Separately, DGGI had earlier investigated the petitioner's availment of ITC on invoices without actual receipt of goods for November 2021 to January 2024, which concluded under Sections 74(5)/74(6) after the petitioner paid Rs.1,50,85,580/- with interest and penalty, with DGGI's closure letter expressly reserving action on other invoices/periods. The petitioner had not responded to the State's notice, uploaded only on the GST portal.

Issues Involved

  1. Whether uploading a show cause notice on the common GST portal amounts to valid service under Section 169 of the CGST Act.
  2. Whether the DGGI's prior closure of investigation for a different period barred the State authority's Section 73 proceedings for FY 2020-21.

Petitioner's Arguments

  • The show cause notice was not served by post or email but merely uploaded on the 'Additional Notices and Orders' tab of the GST portal, so the petitioner remained unaware of it and the resultant order violated natural justice.
  • Since DGGI had already closed investigation into ITC availment and the petitioner had made part payment, the State's demand for an overlapping period amounted to double jeopardy and non-application of mind, relying on the Supreme Court's ruling in Armour Security.

Respondent's Arguments

  • Under Section 169(1)(d) and (2)-(3) of the CGST Act, uploading on the common portal constitutes valid service, deemed effected on the date of upload; the petitioner's non-participation despite valid service was its own default.
  • DGGI's closure letter was expressly limited to the ITC availed from specified suppliers for the periods investigated and did not cover the April 2020-March 2021 period or other invoices, which the jurisdictional State officer remained free to examine.

Court Order / Findings

  • The Court held that uploading of the show cause notice on the common portal amounts to valid service on the assessee under Section 169, and non-participation despite such service was attributable to the petitioner, who ought to have appeared and explained its position.
  • Relying on Armour Security's guidance that initiation of proceedings means formal issuance of a show cause notice, and noting DGGI's investigation did not itself amount to commencement of proceedings for the disputed period, the Court found no jurisdictional overlap warranting interference and declined to scrutinise the merits in writ jurisdiction.
  • The writ petition was dismissed without costs, with liberty to the petitioner to avail the statutory appellate remedy under Section 107, and without expressing any opinion on merits.

Important Clarification

  • Uploading a show cause notice on the GST common portal, including under the 'Additional Notices and Orders' tab, constitutes valid deemed service under Section 169 of the CGST Act.
  • Per the Supreme Court's Armour Security ruling, 'initiation of proceedings' under Section 6(2)(b) means formal issuance of a show cause notice, not mere summons, search or investigation — so an investigation by one wing does not automatically bar a show cause notice by another for a different scope or period.

Sections Involved

  • Section 73, CGST Act, 2017 – demand determination for tax short paid, other than by fraud.
  • Section 74(5)/74(6), CGST Act, 2017 – voluntary payment and closure of proceedings before notice.
  • Section 169, CGST Act, 2017 – modes of service of notices and orders, including portal upload.

Decision – In Favour of

Decided in favour of the Department. The writ was dismissed for non-participation, leaving the petitioner to pursue the statutory appeal on merits.

Case Details

Court: High Court for the State of Telangana at Hyderabad
Case No.: Writ Petition No. 24098 of 2025
Coram: Hon'ble the Chief Justice Aparesh Kumar Singh and Hon'ble Mr. Justice G.M. Mohiuddin
Date of Order: 18.08.2025

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