Facts of the Case

M/S Neh Sales challenged an order dated 12.12.2023 passed by the Deputy Commissioner, State Tax, Sector-7, Prayagraj, under Section 73 of the Goods and Services Tax Act, 2017, creating a demand against it. The petitioner's grievance was that the notice under Section 73 had been uploaded only on the 'Additional Notices and Orders' tab of the GST portal, rather than the main 'Due Notices and Orders' tab, causing it to remain unaware of both the notice and the subsequent order until it was too late to challenge it within limitation. The Department's counsel did not dispute this factual position and conceded that the issue was squarely covered by the Court's own precedent in Ola Fleet Technologies Pvt. Ltd. vs. State of U.P.

Issues Involved

  1. Whether a demand order under Section 73 of the GST Act is sustainable where the underlying notice was uploaded only under the portal's 'Additional Notices and Orders' tab instead of the primary 'Due Notices and Orders' tab.
  2. Whether the petitioner is entitled to the benefit of doubt and a remand, following Ola Fleet Technologies Pvt. Ltd. vs. State of U.P.

Petitioner's Arguments

  • The notices issued under Section 73 were uploaded on the 'Additional Notices and Orders' tab of the GST portal, which is evident from the annexed screenshots, so the petitioner remained unaware of the notice and order and could neither appear before the authority nor challenge it within limitation.
  • The issue is squarely covered by the Court's own decision in Ola Fleet Technologies Pvt. Ltd. vs. State of U.P. & 2 others (Writ Tax No. 855 of 2024), where an identical grievance led to the matter being remanded.

Respondent's Arguments

  • The Department's counsel, on instructions and based on the material on record, did not dispute the petitioner's contention regarding uploading of the notice on the 'Additional Notices and Orders' tab, and accepted that the issue was covered by Ola Fleet Technologies.

Court Order / Findings

  • The Court reiterated its holding in Ola Fleet Technologies that where the assessee is entitled to the benefit of doubt because the order/notice does not reflect under the portal's main 'view notices and orders' tab, the writ petition deserves to be allowed without relegating the assessee to the statutory remedy or calling for a counter affidavit.
  • Following that precedent, the Court quashed and set aside the impugned order dated 12.12.2023.
  • The Assessing Officer was directed to issue a fresh show cause notice with at least 15 days' clear notice, in the manner prescribed by law, and to proceed further based on that fresh notice.

Important Clarification

  • Uploading a GST show cause notice or order only under the 'Additional Notices and Orders' tab, rather than the primary notices tab that assessees ordinarily monitor, amounts to inadequate communication and entitles the assessee to the benefit of doubt.
  • In such cases, courts have consistently quashed the resulting demand and directed a fresh, properly served notice rather than relegating the assessee to a statutory appeal, particularly where no prejudice to the exchequer exists (e.g., the disputed amount remains in deposit).

Sections Involved

  • Section 73, CGST/UPGST Act, 2017 — demand provision under which the impugned order was passed.
  • GST Portal Notice Service Mechanism, CGST Rules, 2017 — governs the manner and validity of electronic service of notices and orders through the common portal.

Decision – In Favour of

The decision is in favour of the assessee (Neh Sales). The impugned demand order was quashed and the department directed to issue a fresh, properly served notice before proceeding further.

Case Details

High Court of Judicature at Allahabad; Writ Tax No. 3193 of 2025 (Neutral Citation No. 2025:AHC:124693-DB); Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Praveen Kumar Giri, J.; Order dated 18.7.2025.

Link to Download the Order

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