Facts of the Case

M/s Sri Ram Rassi Bhandar challenged an order dated 18.12.2023 passed by the Assistant Commissioner, State Tax, Muzaffarnagar, under Section 74 of the Goods and Service Tax Act, 2017, creating a demand against the petitioner. The petitioner contended that the notices issued under Section 74 were uploaded only on the 'Additional Notices and Orders' tab of the GST portal rather than the 'Due Notices and Orders' tab, leaving it unaware of both the notices and the subsequent order until the limitation period to challenge it had passed. The petitioner relied on the Division Bench ruling in Ola Fleet Technologies Pvt. Ltd. v. State of U.P., decided on 22.07.2024, which addressed an identical portal-tab defect. The Division Bench of the High Court of Judicature at Allahabad decided the present matter on 28.07.2025.

Issues Involved

  1. Whether uploading a show cause notice and consequential order on the 'Additional Notices and Orders' tab, instead of the 'Due Notices and Orders' tab of the GST portal, amounts to improper service depriving the assessee of a fair opportunity to respond.
  2. Whether such a defect entitles the petitioner to the benefit of doubt and a fresh notice, following the Ola Fleet Technologies precedent.

Petitioner's Arguments

  • The notices under Section 74 were uploaded on the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab, and the petitioner, being unaware of the notices or the order, could neither appear before the authority nor challenge the order within limitation.
  • The issue was squarely covered by Ola Fleet Technologies Pvt. Ltd. v. State of U.P., where an identical portal-tab defect led the Court to grant the petitioner the benefit of doubt and remand the matter.

Respondent's Arguments

  • Learned counsel for the Department, based on the material on record, did not dispute the contention that the notice and order were uploaded on the 'Additional Notices and Orders' tab instead of the 'Due Notices and Orders' tab, and accepted that the issue was covered by Ola Fleet Technologies.

Court Order / Findings

  • Noting that the Department did not dispute the portal-tab discrepancy and that the issue was squarely covered by its earlier ruling, the Court held that uploading crucial notices and orders under 'Additional Notices and Orders' rather than the assessee-visible 'Due Notices and Orders' tab entitles the petitioner to the benefit of doubt and to have the order quashed, following Ola Fleet Technologies Pvt. Ltd.
  • The writ petition was allowed, and the impugned order dated 18.12.2023 passed under Section 74 was quashed and set aside.
  • The Assessing Officer was directed to issue a fresh notice with at least 15 days' clear notice to the petitioner in the manner prescribed, and to proceed further in accordance with law based on that notice.

Important Clarification

  • A GST notice or order uploaded solely under the 'Additional Notices and Orders' tab, rather than the more visible 'Due Notices and Orders' tab, denies the assessee real notice and is treated by the Allahabad High Court as a service defect warranting benefit of doubt to the taxpayer.
  • Where the Department itself does not dispute the tab-related defect (a known GST portal design issue), courts have consistently quashed the consequential order rather than relegating the assessee to a statutory appeal.
  • Relief in such cases is typically a quashing of the order with a direction for a fresh, properly served notice, rather than a decision on the merits of the tax demand.

Sections Involved

  • Section 74, CGST/UPGST Act, 2017 - determination of tax not paid or short paid by reason of fraud, wilful misstatement or suppression of facts.
  • Section 169, CGST/UPGST Act, 2017 - prescribes valid modes of service of notices and orders, engaged here through the portal-tab service defect.

Decision - In Favour of

Decided in favour of the assessee. The Section 74 order was quashed for improper service via the wrong GST portal tab, with a fresh notice and proceedings directed.

Case Details

Court: High Court of Judicature at Allahabad
Case No.: Writ Tax No. 3447 of 2025
Neutral Citation: 2025:AHC:126010-DB
Coram: Hon'ble Mr. Justice Shekhar B. Saraf and Hon'ble Mr. Justice Praveen Kumar Giri
Date of Decision: 28.07.2025

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