Division Bench upholds validity of statutory notice served via portal, emphasizing assessee's duty to raise timely objections and not remain silent till recovery proceedings.
In a significant judgment dated September 26, 2026, the Kerala High Court (Division Bench comprising Justices Devan Ramachandran and Basant Balaji) dismissed the writ appeal filed by Satwa Solutions challenging the Goods and Services Tax (GST) assessment order passed by the State Tax Officer. The court upheld the Single Judge's order which had earlier dismissed the writ petition on the ground that an alternative statutory remedy was available to the assessee, which they failed to avail.
The appellant, Satwa Solutions, contended that the statutory notice (referred to as Ext.P2) uploaded on the GST portal was defective as it contained only an electronic summary rather than the full details as mandated by law. They argued that this non-compliance rendered the subsequent final order (Ext.P3) invalid and non-est, thereby justifying the invocation of writ jurisdiction despite availability of alternative remedies.
However, the Division Bench rejected this contention, noting that the appellant admittedly received the statutory notice on the portal and failed to raise any objection at the relevant time. The court observed that if the appellant had any grievance regarding the sufficiency or validity of the notice, they ought to have responded promptly and insisted that no further proceedings be taken. Instead, the appellant remained silent until the issuance of the final order and the initiation of recovery proceedings, which was impermissible.
The court further examined the appellant's claim that they were unaware of the notice and order on the portal until recovery action commenced. It held that such assertions, unsupported by any corroborative evidence, were merely self-serving and could not be accepted. The bench highlighted that the appellant had availed Input Tax Credit (ITC) during the relevant period, demonstrating that they were monitoring the GST portal. This fact further weakened the appellant's plea of ignorance.
Reaffirming the principle that statutory notices must be issued in accordance with prescribed procedures, the court nonetheless emphasized the importance of timely objection and active participation by the assessee in the statutory process. The Division Bench concluded that the appellant could not bypass the prescribed statutory remedies and seek relief through writ jurisdiction after remaining silent.
The appeal was accordingly dismissed, with the court clarifying that if any other legal remedies are available to the appellant, those remain open and are not precluded by this judgment.
This ruling reinforces the principle that procedural compliance in GST assessments is paramount, and assessees must vigilantly engage with statutory notices and raise objections within prescribed timelines. Failure to do so may result in the forfeiture of the right to challenge such orders through extraordinary writ jurisdiction.
Bottom Line:
Writ petition challenging GST assessment order was rightly dismissed on ground of availability of alternative statutory remedy where assessee had admittedly received notice on portal but failed to raise objection at proper time - Plea that notice contained only electronic summary and was therefore invalid involved factual dispute unsupported by corroboration - Assessee cannot remain silent till recovery proceedings and then invoke writ jurisdiction.
Statutory provision(s):
Article 226 of the Constitution of India, Goods and Services Tax Act (Relevant provisions relating to assessment and notice procedures)
Satwa Solutions v. State Tax Officer, (Kerala)(DB) : Law Finder Doc Id # 2992832
