Facts of the Case

The petitioner, Elchico Hotels And Restaurants Pvt. Ltd, challenged an order dated 10th March, 2021 passed by the Deputy Commissioner, State Tax, Sector-12, Prayagraj, imposing penalty under Section 125 of the Goods and Services Tax Act, 2017. The petitioner's grievance was that the notices issued under Section 125 were uploaded only on the 'Additional Notices and Orders' tab of the GST portal, instead of the 'Due Notices and Orders'/'View Notices and Orders' tab that assessees ordinarily check, leaving the petitioner unaware of the proceedings and unable to respond or challenge the order within limitation.

Issues Involved

  1. Whether a penalty order under Section 125 is sustainable where the preceding notice was uploaded on the portal's 'Additional Notices and Orders' tab rather than the tab ordinarily viewed by assessees.

Petitioner's Arguments

  • The notice being uploaded on the wrong tab of the GST portal deprived the petitioner of effective knowledge of the proceedings, precluding a timely response or challenge.
  • The issue stood squarely covered by the Court's decision in Ola Fleet Technologies Pvt. Ltd. v. State of U.P. (Writ Tax No. 855 of 2024, decided 22.7.2024), which had granted the benefit of doubt to an assessee in identical circumstances.

Respondent's Arguments

  • Learned counsel for the Department, based on the material on record, did not dispute the fact that the notices had been uploaded under the 'Additional Notices and Orders' tab, and fairly accepted that the issue was covered by Ola Fleet Technologies.

Court Order / Findings

  • Extracting its reasoning in Ola Fleet Technologies, the Court reiterated that where an order does not reflect under the 'view notices and orders' tab but instead under 'additional notice and orders', the assessee is entitled to the benefit of doubt, since there is no dispute that the design of the GST portal (a matter for GSTN) does not allow the assessing officer a choice as to which tab an order appears under.
  • Following that ratio, the impugned penalty order dated 10.03.2021 was quashed and set aside.
  • The Assessing Officer was directed to issue a fresh notice giving at least fifteen days' clear notice, in the manner prescribed by law, and to proceed further in accordance with law based on that notice.

Important Clarification

  • Uploading of a Section 125 (or other) notice/order under the GST portal's 'Additional Notices and Orders' tab, rather than the tab an assessee ordinarily monitors, is treated as a communication defect entitling the assessee to the benefit of doubt; such orders are liable to be quashed, with liberty to the Department to issue a fresh notice with adequate clear notice period.

Sections Involved

  • Section 125 of the CGST Act, 2017 — general penalty for contravention of provisions with no separate penalty prescribed.
  • Section 169 of the CGST Act, 2017 — modes of service of notice, orders and other communications (contextual to the portal-tab dispute).

Decision – In Favour of

Allowed, in favour of the Assessee — penalty order quashed with liberty to the Department to issue a fresh notice and pass a fresh order.

Case Details

Court: High Court of Judicature at Allahabad
Case No.: Writ Tax No. 4498 of 2025
Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Praveen Kumar Giri, J.
Date of Order: 24th September, 2025

Link to Download the Order

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