Court holds that mere uploading of notices in non-standard GST portal section denies effective service, orders fresh adjudication with opportunity to be heard
In a significant ruling delivered on October 16, 2026, the Bombay High Court (Division Bench) set aside a GST-related adjudication order demanding Rs. 62,42,948 from Abracadabra India and others, on the ground that the petitioner was denied proper notice and opportunity of hearing. The Court observed that the impugned show-cause notices and orders were not placed in the designated "View Notices and Orders" window on the GST portal but were uploaded only in the "Additional Notices and Orders" section under the User Services tab. This resulted in the petitioner remaining unaware of the proceedings, vitiating the entire adjudication process.
The petitioners had challenged the demand raised by respondent No.5 under the CGST Act, 2017, contending that they were not duly served with show-cause notices as these were not visible on the homepage or the regular portal interface used by taxpayers. The notices being accessible only through a less obvious section caused the petitioner and their Chartered Accountant to miss them entirely, until a legal counsel's independent scrutiny revealed their existence. The petitioner argued that this non-standard mode of service violated the principles of natural justice, as they had no reasonable opportunity to present their case.
The Revenue Department contended that the notices were properly served and relied on the records on the GST portal. However, the Court referred to its earlier judgment in T.S.Lines India Pvt. Ltd. v. State of Maharashtra, 2024 SCC Online Bom 6175, wherein it was held that effective service requires placement of notices in the designated "View Notices and Orders" section and that failure to provide such notice results in denial of natural justice.
The Court agreed with the petitioner's submissions, stating that no fault could be attributed to the petitioner for failing to notice the notices not properly placed in the standard portal section. Consequently, the Court quashed the impugned adjudication order dated March 31, 2023, and the consequential recovery actions, including communication to banks for attachment.
However, the Court kept the question of limitation regarding the show-cause notice open and remanded the matter back to the adjudicating authority. Both parties were directed to appear before respondent No.5 on October 27, 2026. The petitioner was permitted to file a reply, and after completion of pleadings, the authority was directed to pass a fresh order within four weeks. The Court emphasized expeditious disposal and discouraged unnecessary adjournments.
This judgment reinforces the importance of strict adherence to procedural fairness in tax adjudications under the GST regime, especially ensuring that taxpayers receive effective notice in a manner accessible and visible on the portal, safeguarding their right to be heard before imposition of tax, interest, and penalty.
Bottom Line:
GST/Service Tax - Where notices and orders were not placed in the "View Notices and Orders" window on GST portal and were instead uploaded in "Additional Notices & Orders" section, assessee could not be blamed for not noticing them - Absence of proper opportunity of hearing vitiated adjudication order - Impugned tax, interest and penalty order and consequential recovery proceedings quashed and matter remanded.
Statutory provision(s): Article 226 of the Constitution of India, Section 79 of the Central Goods and Services Tax (CGST) Act, 2017
Abracadabra India v. Union of India, (Bombay)(DB) : Law Finder Doc Id # 2998732
