Facts of the Case

M/S Shri Hari Constructions, a proprietorship firm, challenged an order dated 16.02.2025 passed under Section 73 of the GST Act, 2017 creating a tax demand, along with the appellate order dated 16.07.2025 dismissing its statutory appeal as time-barred. The petitioner's case was that no hearing date was ever fixed or communicated for the underlying proceedings — the relevant notices had been uploaded on the GST portal only under the 'Additional Notices and Orders' tab rather than the regular 'View Notices and Orders' tab, of which the assessee remained unaware. As a result, the petitioner could neither respond to the notice nor challenge the demand within the statutory appeal period, resulting in the time-barred dismissal of its appeal. The petitioner approached the Allahabad High Court, Lucknow Bench, under Article 226, relying on an earlier ruling of the same Court on an identical portal-upload defect.

Issues Involved

  1. Whether an order under Section 73 passed pursuant to notices uploaded only under the 'Additional Notices and Orders' tab denies effective opportunity of hearing.
  2. Whether such a defect vitiates both the assessment order and the consequential appellate dismissal on limitation.
  3. Whether the matter warrants remand for fresh adjudication after proper notice.

Petitioner's Arguments

  • No date for hearing was fixed or communicated to the petitioner.
  • Notices of hearing were uploaded only on the portal's 'additional tab', which could not reasonably have come to the petitioner's notice.
  • The identical issue was already decided by this Court in Ola Fleet Technologies Private Limited v. State of U.P. and 2 Others, Writ Tax No. 855 of 2024, decided on 22.07.2024.
  • Both the assessment order and the limitation-barred appellate order deserve to be quashed on this sole ground.

Respondent's Arguments

  • Learned Standing Counsel for the State did not dispute the factual position regarding the manner of uploading the notice.
  • No independent justification was placed on record for the mode of service adopted.

Court Order / Findings

  • The Court followed its earlier ruling in Ola Fleet Technologies, holding that uploading statutory notices only under the 'Additional Notices and Orders' tab, instead of the regular notices tab, entitles the assessee to the benefit of doubt on lack of effective communication.
  • The order dated 16.02.2025 under Section 73 and the appellate order dated 16.07.2025 were both quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after giving the petitioner a proper opportunity of hearing.

Important Clarification

  • Communication of a show-cause notice or hearing intimation only through the 'Additional Notices and Orders' tab of the GST common portal, rather than the regular notices tab an assessee is expected to monitor, does not satisfy the requirement of effective service.
  • Once such a defect is established, both the assessment order and any consequential limitation-based rejection of appeal are liable to be set aside and the proceedings restored for a hearing on merits, irrespective of whether the officer is personally responsible for the portal's design.

Sections Involved

  • Section 73, CGST/UP GST Act, 2017 — determination of tax not paid or short paid for reasons other than fraud.
  • Section 107, CGST/UP GST Act, 2017 — appeal to the Appellate Authority, including limitation for filing.

Decision – In Favour of

Assessee. The impugned orders were quashed and the matter remanded for fresh adjudication after a proper opportunity of hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 724 of 2025; Neutral Citation No. 2025:AHC-LKO:44670; Coram: Hon'ble Pankaj Bhatia, J.; Order dated 01.08.2025.

Link to Download the Order

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