Case Note & Summary
The Bombay High Court disposed of a batch of writ petitions challenging assessment orders passed under the Central Goods and Services Tax Act, 2017 (CGST Act) on the ground of violation of principles of natural justice. The petitioners, including Rochem Separation Systems (India) Pvt. Ltd., Pyramid Developers, and Leighton India Contractors Pvt. Ltd., were issued show cause notices and subsequent assessment orders which were uploaded on the GST portal but not communicated to them. The petitioners contended that they were unaware of the proceedings and were not afforded an opportunity of hearing. The court examined the provisions of the CGST Act, particularly Sections 73 and 75, and the rules regarding service of notices. It held that mere uploading of a show cause notice or assessment order on the GST portal does not constitute proper service. The court emphasized that principles of natural justice require that the notice be actually communicated to the assessee, and that an opportunity of hearing be granted before an adverse order is passed. The court set aside the impugned assessment orders and remanded the matters back to the assessing authority for fresh consideration, directing that proper notices be served and personal hearings be afforded. The court also directed that the petitioners be given an opportunity to file replies and produce evidence. The judgment reinforces the importance of adherence to natural justice in tax proceedings.
Headnote
A) Constitutional Law - Principles of Natural Justice - Show Cause Notice - Communication - Mere uploading of show cause notice on GST portal without actual communication to the assessee violates principles of natural justice - Held that proper service of notice is essential before passing an adverse order (Paras 10-15). B) Taxation - Central Goods and Services Tax Act, 2017 - Section 73 - Assessment Order - Service of Order - Assessment order uploaded on GST portal without serving copy to the assessee is not valid - Held that the order must be communicated to the assessee to enable filing of appeal (Paras 16-20). C) Taxation - Central Goods and Services Tax Act, 2017 - Section 75(4) - Opportunity of Hearing - Personal hearing must be granted if requested or if adverse decision is proposed - Held that failure to grant hearing vitiates the assessment order (Paras 21-25).
Issue of Consideration
Whether assessment orders passed under the CGST Act without proper service of show cause notices and without affording personal hearing are valid when notices and orders were merely uploaded on the GST portal.
Final Decision
The court allowed the writ petitions, set aside the impugned assessment orders, and remanded the matters back to the assessing authority for fresh assessment after giving proper notice and opportunity of hearing to the petitioners.
Law Points
- Principles of natural justice
- Show cause notice must be communicated
- Assessment order must be served
- GST portal upload not sufficient communication
- Opportunity of hearing
