Court directs Chief Commissioner of State Tax to investigate portal malfunction after three conflicting personal hearing notices issued on the same date; warns of strictures and exemplary costs for non-compliance
In a recent judgment dated October 16, 2026, the Gujarat High Court (Division Bench) expressed grave concern over a critical procedural lapse in the issuance of GST personal hearing notices. The case involved Mustufamiya Hussainmiya Shaikh, proprietor of M/s Mustufa Sales Agency, versus the State of Gujarat and others.
The court was startled to find that three digitally signed notices for personal hearings were issued by the appellate authority on the same date-April 16, 2026-each bearing different notice numbers and specifying different hearing dates and times. The notices, signed within an interval of approximately two minutes, fixed hearings on April 18, April 21, and April 24, 2026, respectively.
This anomaly was described by the court as a "very serious lacuna" that could potentially enable manipulation of the GST hearing process. The court emphasized that such procedural discrepancies undermine the integrity of tax administration and the appellate process.
In response to these findings, the Gujarat High Court directed the Chief Commissioner of State Tax, the highest authority in the state's tax administration, to file a detailed report on the functioning of the digital portal and the mechanisms that allowed the generation of multiple conflicting notices on the same day. The report is mandated to be submitted by the next hearing date, October 26, 2026.
Further, the court ordered the appellate authority to pass a fresh appellate order and place it before the court on the next date of hearing. The registry was instructed to communicate the court's order to all respondents involved in the matter.
The court also warned that if the explanation provided by the tax authorities is found unsatisfactory, it would not hesitate to impose exemplary costs and other strictures on the responsible officers who manipulated the system.
This judgment underscores the judiciary's vigilant stance on ensuring transparency and fairness in tax-related proceedings. It also highlights the necessity for robust digital governance in tax administration to prevent procedural abuses and safeguard taxpayer rights.
Bottom Line:
GST/Tax administration - Court found serious irregularity in issuance of three digitally signed notices of personal hearing on the same date with different notice numbers and different hearing dates/times - Chief Commissioner of State Tax directed to file report on functioning of portal and process permitting such generation of notices - Appellate authority directed to pass fresh appellate order - Court warned of strictures and exemplary costs if explanation found unsatisfactory.
Statutory provision(s): Central Goods and Services Tax Act, 2017.
