Case Note & Summary
The Bombay High Court dealt with three writ petitions filed by Oasis Realty, Roma Builders Pvt Ltd, and Macrotech Developers Limited challenging assessment orders passed under the Maharashtra Goods and Services Tax Act, 2017. The petitioners contended that show cause notices and assessment orders were uploaded on the GST portal but were never communicated to them, depriving them of an opportunity to respond. The respondents argued that the petitioners had access to the portal and could have viewed the notices. The court examined the facts and found that the petitioners were not aware of the proceedings and were not given a fair hearing. The court held that uploading documents on the portal without actual communication violates principles of natural justice. Consequently, the court set aside the assessment orders and remanded the matters back to the assessing officers to pass fresh orders after providing the petitioners an opportunity of hearing. The court also directed that the period from the date of the original orders to the date of this judgment shall be excluded for computing limitation.
Headnote
A) Constitutional Law - Natural Justice - Show Cause Notice - Communication - Uploading of show cause notice and assessment order on GST portal without actual communication to the assessee violates principles of natural justice - The court held that mere uploading on the portal does not constitute proper service, and the assessee must be given an opportunity of hearing before an adverse order is passed (Paras 6-8).
B) Goods and Services Tax - Assessment - Limitation - Remand - Where assessment orders are set aside for violation of natural justice, the matter is remanded back to the assessing officer to pass fresh orders after giving the assessee an opportunity of hearing, and the period from the date of the original order to the date of this judgment shall be excluded for computing limitation (Para 9).
Issue of Consideration
Whether assessment orders passed under the Maharashtra Goods and Services Tax Act, 2017 without proper communication of show cause notices and orders to the assessee, merely by uploading on the GST portal, are sustainable in law.
Final Decision
The court allowed the writ petitions, set aside the assessment orders, and remanded the matters back to the assessing officers to pass fresh orders after giving the petitioners an opportunity of hearing. The period from the date of the original orders to the date of this judgment shall be excluded for computing limitation.
Law Points
- Natural justice
- opportunity of hearing
- show cause notice
- assessment order
- GST
- communication
- portal upload
- limitation period
- remand
Case Details
2022 LawText (BOM) (09) 118
Writ Petition (ST) No. 23507 of 2022, Writ Petition (ST) No. 12287 of 2022, Writ Petition (ST) No. 12457 of 2022
Mr. Prakash Shah a/w Mr. Jas Sanghavi, Mr. Mihir Mehta and Mr. Yash Prakash i/by PDS Legal for Petitioner in WPL No.23507 of 2022; Mr. Rahul C. Thakar i/by Mr. C. B. Thakar for Petitioner in WPL No.12287 of 2022; Mr. Vishal Agrawal a/w Mr. Akshit Malhotra and Ms. Hima Doshi i/by Mr. Vishal Agrawal for Petitioner in WPL No.12457 of 2022; Mr. P. P. Kakade, GP a/w Mr. B. V. Samant, AGP for Respondent-State; Mr. J. B. Mishra for Respondent-Union of India
Oasis Realty, Roma Builders Pvt Ltd, Macrotech Developers Limited
Union of India, Joint Commissioner of State Tax (Appeal) – V, Deputy Commissioner of State Tax, State of Maharashtra
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Nature of Litigation
Writ petitions challenging assessment orders passed under the Maharashtra Goods and Services Tax Act, 2017 on the ground of violation of principles of natural justice.
Remedy Sought
Petitioners sought quashing of assessment orders and direction to the respondents to provide an opportunity of hearing.
Filing Reason
Assessment orders were passed without proper communication of show cause notices and orders, as they were merely uploaded on the GST portal without actual service on the petitioners.
Issues
Whether the assessment orders passed under the MGST Act without proper communication of show cause notices and orders to the assessee are sustainable.
Whether uploading of documents on the GST portal constitutes sufficient service.
Submissions/Arguments
Petitioners argued that show cause notices and assessment orders were uploaded on the GST portal but never communicated to them, violating natural justice.
Respondents contended that the petitioners had access to the GST portal and could have viewed the notices and orders.
Ratio Decidendi
Uploading of show cause notice and assessment order on the GST portal without actual communication to the assessee does not constitute proper service and violates principles of natural justice. The assessee must be given an opportunity of hearing before an adverse order is passed.
Judgment Excerpts
The show cause notices and assessment orders were uploaded on the GST portal but were never communicated to the petitioners.
The petitioners were not aware of the proceedings and were not given an opportunity of hearing.
The assessment orders are set aside and the matters are remanded back to the assessing officers to pass fresh orders after giving the petitioners an opportunity of hearing.
Acts & Sections
- Maharashtra Goods and Services Tax Act, 2017:
