GST Update on validity of order served on GST Portal/via e-mail 124/2020-21

Gone are the days wherein delay could be attributed to postal defaults as in today’s digital world, e-mails have become crucial part of the communication. Section 169 of the CGST Act pertaining to service of notice recognises communication by e-mail on the registration application of the taxpayer and service of order on common portal as valid methods of service of notice to the taxpayer. Recent decision pronounced by Hon’ble Kerala High Court in case of M/S PEE BEE ENTERPRISES VS ASSISTANT COMMISSIONER affirms that making order available on the common portal or mailing the order to the registered mail id of the taxpayer is proper service of order to the taxpayer. The decision pronounced by the Hon’ble Kerala High Court is the subject matter of discussion of our present update.

The case of the petitioner was that best judgment order passed against them for the period April and May, 2019 on 20.08.2019 was received by them through post on 30.09.2019 and consequently, the time limit of filing returns within 30 days from the date of best judgment order should be counted from the date of receipt of hard copy of the order via post as the returns were filed by the petitioner on 30.10.2019. However, the department stated that since the best judgment order was made available on the GST portal on 20.08.2019 and was also mailed to the petitioner on their registered mail id on 20.08.2019, the time limit for filing returns should start from 20.08.2019 itself and not from the date of postal acknowledgement of the order which was mere formality. The Hon’ble High Court concurred with the department and held that as service of order by making available on common portal or via registered mail id is valid according to section 169 of the CGST Act, 2017, the contention of the petitioner is not acceptable. However, the petitioner was granted two week’s time to file appeal before the appellate authority against the best judgement order passed against them.

The above decision reflects that the taxpayers need to be technology savvy and its high time that it is realised that correspondences made on GST portal or on registered e-mail ids are valid service by the department and if there is any negligence on part of the taxpayer, the consequences of delay would be suffered by them. However, it is pertinent to point that even today, the communications on interception of vehicle is being made manually and the orders are not uploaded on the GST portal but lacunae on part of department is never serious enough and it is ultimately the taxpayers who have to fight the battle of litigation.

This is solely for educational purpose.
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GST Update on validity of order served on GST Portal/via e-mail 124/2020-21

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