ADDITIONAL NOTICES" Tab on GST Portal: Issues and High Court Decisions

 

On the GST portal, taxpayers have access to two sections for important updates from the department:

1. Notices
2. Additional Notices

Ideally, all notices, including show cause notices (SCNs), should be served through email, physical hard copy, and uploaded under the “Notices” section on the portal for consistency. However, the department frequently uploads these notices in the “Additional Notices” tab, leading to confusion and missed responses. This practice has led to various legal challenges, and multiple High Courts have ruled in favor of the taxpayers on this matter, emphasizing the importance of proper notification placement. Here is an overview of recent High Court rulings on this issue:

1. Delhi High Court

• ACE Cardiopathy Solutions Pvt. Ltd.
  The petitioner in this case missed a show cause notice that was uploaded under the "Additional Notices" section of the GST portal. The court set aside the subsequent order, granting the petitioner an opportunity to respond to the notice, as the improper placement prevented them from being aware of it.

• Anhad Impex
  Here, a show cause notice demanding a response was uploaded under "Additional Notices" instead of "Notices." The court ruled that the taxpayer had made a valid case, having missed the notice due to its misplacement. Consequently, the court allowed the taxpayer an opportunity to respond before the SCN was re-evaluated.

2. Bombay High Court

• T.S. Lines India Pvt. Ltd.
  In this case, the taxpayer was unaware of an order issued under Section 73 of the CGST Act because it was not available in the "View Order and Notice" section nor communicated by email. The order was instead uploaded in the "Additional Notices and Orders" section, which prevented the taxpayer from being informed and having the chance to reply. The court quashed the order, emphasizing the need for proper notification.

3. Madras High Court

• Murugesan Jayalakshmi
  Show cause notices and assessment orders in this case were posted in the "View Additional Notices" section, while previous similar communications had been in the "View Notices" tab. Since the taxpayer was unaware of the pending proceedings, the court quashed the orders, allowing the taxpayer an opportunity to contest the charges.

• Panjatcharam Kumaravel
  When a show cause notice and assessment order were uploaded in "View Additional Notices and Orders" instead of "View Notices," the taxpayer missed the notice. The court remanded the matter, granting the taxpayer a fresh opportunity to respond.

• East Coast Constructions and Industries Ltd.
  In this case, the taxpayer raised concerns about the improper communication of notices. The assessment order was set aside, and authorities were instructed to reevaluate the issue. Additionally, the court urged authorities to clarify and resolve placement issues between the “View Additional Notices and Orders” and “View Notices and Orders” sections on the portal.

Conclusion

These cases underscore the importance of correctly categorizing and communicating notices on the GST portal. When critical information is uploaded under “Additional Notices,” it risks being overlooked by taxpayers, denying them the opportunity to respond. The High Courts’ consistent rulings to quash orders or remand cases due to misplaced notices serve as a strong reminder to tax authorities on the need for clarity and consistency in taxpayer communication. Addressing this issue will not only improve compliance but also foster taxpayer trust in the system