Court Sets Aside Order Rejecting Refund Application, Calls for Procedural Fairness on GSTN Portal
In a significant ruling, the Allahabad High Court has emphasized the necessity for procedural fairness in the Goods and Services Tax (GST) proceedings, directing the Goods and Services Tax Network (GSTN) to enable the filing of supplementary or additional replies online. This judgment came in response to a petition filed by M/S Tejashva Tractors And Motors against the Union of India, addressing a key issue faced by taxpayers in the GST system.
The bench comprising Justices Saumitra Dayal Singh and Vivek Saran reviewed the case where M/S Tejashva Tractors And Motors was prevented from submitting an additional reply to a show-cause notice due to the current limitations of the GSTN Portal, which only allows a single online reply. This procedural barrier led to the rejection of the petitioner’s refund application, prompting them to seek judicial intervention.
The court, after hearing arguments from both sides, underscored the importance of the online system in maintaining transparency and efficiency in communication between taxpayers and revenue authorities. However, it pointed out the deficiencies in the current system which do not accommodate additional replies, thereby hindering fair adjudication.
In its detailed judgment, the court suggested a refined mechanism for the GSTN Portal that includes a request button for filing additional replies, which must be accepted by the issuing authority. This process would ensure an audit trail with timestamped evidence of such requests, aligning with the principles of procedural fairness.
The court deemed the alternative remedy of appeal unsuitable in this context, as the petitioner’s initial reply was deemed incomplete due to the inability to file supplementary responses. Consequently, the court set aside the previous order rejecting the refund application and directed the respondent to allow the petitioner to file an additional reply offline, instructing that a fresh order be passed after considering the supplementary reply.
This decision highlights the judiciary's proactive role in addressing systemic issues within the GST framework, ensuring that taxpayers are not disadvantaged by procedural limitations. The GSTN authorities have been advised to consider and implement these changes to facilitate a more equitable process.
Bottom line:-
GST proceedings - Filing of additional/supplementary replies must be facilitated through online mode on the GSTN Portal to ensure procedural fairness and effective communication between taxpayers and revenue authorities.
Statutory provision(s): Goods and Services Tax Act, 2017
M/S Tejashva Tractors And Motors v. Union of India, (Allahabad)(DB) : Law Finder Doc id # 2916735
