Service Of Notices, Orders Through GST Portal Is Valid Mode Of Service: Madras High Court
The Madras High Court has held that the service of notices and orders through GST portal is a valid mode of service and rejects the argument that the GST portal is not a “designated computer resource of the assessee” and hence as per Section 13 (2) (a) (ii) of the Information Technology Act, receipt occurs only when the communication is retrieved.
The bench of Justice Mohammed Shaffiq has observed that Assessing Officers while issuing/passing notice/order, summons or other communications and served in terms of clause (d) to sub-section (1) of Section 169, simultaneously issue an alert SMS to the mobile number of the taxable persons and send an e-mail to the registered email ID of the taxable persons independent of the email and SMS being auto generated and issued by the GST Network.
“The above exercise was suggested by this Court only to try and make aware taxable persons that such notice/orders/proceedings has been uploaded in the common portal. Apprehensions were expressed by the respondent that this may constitute a requirement in addition to whatever is provided under the Act to constitute a valid service. It is clarified that instructions to be issued may state that it is an inter departmental instruction/confidential and meant for administrative purpose and would not in any manner have a bearing in deciding the validity of service which must be made solely on the basis of extant provisions/rules under GST Act/Rule,” the court said.
The issue raised was whether service of notice/order by making available in the Common Portal is valid.
The petitioner was engaged in providing works contract service primarily to the Central and State Government. Petitioner was registered under the Goods and Service Tax Act, 2017 (GST Act). Petitioner filed statutory returns and it is stated that appropriate taxes were also duly discharged. Petitioner was assigned to Central jurisdiction.
While so, the petitioner’s place of business was visited by GST Intelligence, and their books were verified by the State Tax Officers. During the course of such inspection, discrepancies were noticed relating to short payments of taxes for the period 2017-18 to 2022-23.
An intimation in Form DRC-01A dated 01.04.2024 for the period 2018-19 was issued. The intimation contained allegations of discrepancies between Profit and Loss Account and GSTR 3B, GSTR 7 and GSTR 3B, Availment of ITC contrary to Section 16 of the Act. The above intimation was uploaded in GST Common Portal. This was followed by a show cause notice in DRC-01 which was uploaded in the Common Portal for the period 2021-22.
The contentions/ allegations in DRC-01 were similar to those raised in DRC-01A. The order for the period 2021-22 dated 06.08.2024 came to be passed. It is this order which is the subject matter of challenge in this writ petition.
The petitioner contended that common portal is a computer resource for the purpose of Information Technology Act, 2000 (IT Act). It is also not in dispute that each of the taxable persons registered under GST Act are given an unique login ID and Password to enable them to have access to the portal. Common portal is thus a “Designated Computer Resource”, for both Department and taxable persons. In terms of Section 13 (2) (a) of IT Act, 2000, receipt occurs when the electronic record in the present case notice/order enters the “Designated Computer Resource” i.e., Common Portal.
The court held that service by making it available in the common portal is a valid mode of service in terms of section 169 of the GST Act. Service is complete when it enters the common portal i.e., when it is made available in the common portal.
Case Details
Case Title: M/s.Poomika Infra Developers Versus State Tax Officer
Case No.: W.P. Nos.33562, 33563, 33565, 33573, 33692, 33758 of 2024, 1842, and 1949 of 2025
Date: 09.04.2025
Counsel For Petitioner: G.Natarajan
Counsel For Respondent: Hajanazarudeen