In the matter of M/S. SHRI SHYAM BABA EDIBLE OILS VERSUS THE CHIEF COMMISSIONER AND ANOTHER (W. P. No. 16117/2020 dated 19th November, 2020), the Hon’ble High Court of Madhya Pradesh held that as per Rule 142, the only prescribed procedure for communicating notice and order is uploading the same on GST portal. However, respondent has communicated the same through email and failed to upload on GST portal. As per Trite principle of Law, when a particular procedure is prescribed then all other procedures/modes are excluded. Therefore, Hon’ble High Court held that impugned notice and order, not uploaded on GST portal, is liable to be set-aside.
“142. Notice and order for demand of amounts payable under the Act.-
(1) The proper officer shall serve, along with the
(a) notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01,
(b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable.
(1A) The proper officer shall, before service of notice to the person chargeable with tax, interest, and penalty, under subsection (1) of Section 73 or sub-section (1) of Section 74, as the case may be, shall communicate the details of any tax, interest, and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A.
….”
Similar view was also taken by Hon’ble High Court of Madras in the matter of AKASH GARG VERSUS STATE OF M.P. (W. P. No. 16117/2020) dated 19th November, 2020.
Therefore, Hon’ble High Court has held that mere communication of Show Cause Notice and Demand Order is not sufficient unless the communication is carried out through the way provided in statute. Therefore, even if the department send the Show Cause Notice and Demand order through mail and the assessee has complete knowledge of the same, still such communication shall not be considered as valid as it is not done according to Rule 142 of CGST Rules.
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