Introduction

The principles of natural justice continue to play an important role in GST proceedings, particularly where a taxpayer claims that he was not effectively informed about a show cause notice or adjudication proceedings.

In a recent matter before the Calcutta High Court, the Court considered a situation where a GST show cause notice was uploaded on the GST portal under the “Additional Notice and Orders” tab, and the taxpayer claimed that no separate or effective intimation of the notice was received.

The taxpayer subsequently became aware of the adjudication order and filed an appeal under Section 107 of the Central Goods and Services Tax Act, 2017 (CGST Act) and the West Bengal Goods and Services Tax Act, 2017 (WBGST Act). However, the appeal was dismissed on the ground of limitation.

Considering the circumstances, the Court held that a prima facie case of violation of natural justice had been made out and consequently quashed both the adjudication order and the appellate order.

Background of the Case

The petitioner was subjected to GST proceedings pursuant to a show cause notice in Form GST DRC-01, bearing No. ZD190524017416E dated 12 May 2024, demanding tax, interest and penalty.

According to the petitioner, the notice was uploaded on the GST portal under the “Additional Notice and Orders” section. The petitioner contended that because the notice was uploaded in this manner, there was no actual or effective intimation enabling the petitioner to respond to the proceedings.

As a result, the petitioner did not submit a response to the show cause notice.

An adjudication order was subsequently passed on 28 July 2024.

The petitioner claimed that the adjudication order came to its knowledge only in March 2025, when the petitioner's accountant checked the GST common portal.

Thereafter, the petitioner preferred an appeal before the appellate authority under Section 107 of the CGST Act and WBGST Act. However, the appeal was dismissed on 29 May 2025, principally on the ground that it was barred by limitation.

The petitioner therefore approached the High Court challenging both the adjudication order and the appellate order.

Petitioner's Submissions

The petitioner's counsel advanced several grounds before the Court.

First, it was submitted that the GST authorities had issued the show cause notice in Form GST DRC-01 demanding tax, interest and penalty.

Second, the petitioner contended that the notice had merely been uploaded under the “Additional Notice and Orders” tab of the GST portal. According to the petitioner, this resulted in the petitioner not receiving actual intimation of the proceedings and, consequently, the petitioner could not respond to the notice.

Third, the petitioner stated that it came to know about the adjudication order dated 28 July 2024 only when the accountant checked the common portal in March 2025.

Fourth, although the petitioner subsequently filed an appeal under Section 107, the appellate authority dismissed the appeal on limitation without examining the petitioner's case on merits.

Finally, it was argued that the proceedings suffered from a violation of the principles of natural justice and that the statutory procedure had not been duly followed.

Revenue's Submissions

The State respondents opposed the writ petition.

The respondents argued that the petitioner had been given sufficient opportunities to defend the proceedings and, therefore, the appellate authority was justified in dismissing the appeal on the ground of limitation.

According to the Revenue, there was no sufficient justification for the petitioner's failure to participate in the proceedings within the prescribed time.

High Court's Findings

After hearing both sides and examining the records, the Court found that the petitioner had been able to establish a prima facie case.

A significant factor considered by the Court was the manner in which the show cause notice had been uploaded on the GST portal.

The Court noted that the show cause notice had been uploaded only under the “Additional Notice and Orders” tab and that no separate intimation had been given to the petitioner.

The Court found that, in the circumstances of the case, the petitioner was unable to respond to the show cause notice.

The Court consequently held that this amounted to a violation of natural justice.

Importance of Effective Notice

The decision underscores an important distinction between merely placing a document on an electronic portal and ensuring that a taxpayer has a meaningful opportunity to participate in proceedings.

GST proceedings can result in substantial tax, interest and penalty liabilities. Therefore, where the taxpayer demonstrates that he was effectively deprived of an opportunity to respond because of the manner in which the notice was communicated, the Court may intervene to protect the right of hearing.

The Court's reasoning was also influenced by the fact that the petitioner's appeal had not been rejected after consideration of the merits. Instead, the appeal had been dismissed only on the ground of limitation.

Orders Passed by the Court

The High Court issued significant directions.

1. Appellate and Adjudication Orders Quashed

The Court quashed and set aside:

• the appellate order dated 29 May 2025;

• the adjudication order dated 28 July 2024; and

• the consequential bank attachment.

2. Fresh Adjudication on Merits

The concerned respondent authority was directed to revisit the matter and consider the grounds raised by the petitioner in its appeal on merits.

3. Opportunity of Hearing

The authority was directed to provide the petitioner with an opportunity of hearing before passing a fresh order.

4. Time Limit for Fresh Order

The respondent authority was directed to pass a fresh, reasoned adjudication order in accordance with law within 12 weeks from the date of the order.

The decision was also required to be communicated to the petitioner within one week thereafter.

GST Case Law Subhra Baral Versus The Deputy Commissioner of Revenue

Citation-2026 TAXONATION 2286 (CALCUTTA)

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