Assessee's duty to monitor GST Portal after cancellation of GST registration

[CA Bimal Jain]

The Hon’ble Kerala High Court in KODUVAYUR CONSTRUCTIONS VERSUS THE ASSISTANT COMMISSIONER-WORKS CONTRACT, STATE GST DEPARTMENT KERALA, THE DEPUTY COMMISSIONER OF STATE (ARREAR RECOVERY) - 2023 (8) TMI 834 - KERALA HIGH COURT  held that, it is assessee’s responsibility to check the GST portal for any notice or order that had been served on it the assessment order was not served in a valid manner was untenable.

Facts:

M/s. Koduvayur Constructions (“the Petitioner”) a registered dealer under the Central Goods and Services Tax Act, 2017 (“the CGST Act”) whose GST registration was cancelled by the order dated October 21, 2021 w.e.f. September 01, 2021. The Petitioner was under the impression that it had no liability to pay the taxes under the GST law.

However, the Assistant Commissioner (“the Respondent”) issued an assessment order on the common portal dated October 14, 2022 (“the assessment Order”) demanding payment of INR 19,22,566/-.

The petitioner alleges that it was not served with proper notice as provided under the CGST Act. Hence, the entire proceedings leading to cancellation of GST registration and the same is liable to be quashed.

Issue:

Whether service of an assessment order on common GST portal after cancellation of GST registration can be considered an effective mode of service of order under GST law?   

Held:

The Hon’ble Kerala High Court in KODUVAYUR CONSTRUCTIONS VERSUS THE ASSISTANT COMMISSIONER-WORKS CONTRACT, STATE GST DEPARTMENT KERALA, THE DEPUTY COMMISSIONER OF STATE (ARREAR RECOVERY) - 2023 (8) TMI 834 - KERALA HIGH COURT  held as under: -

• Observed that, a plain reading of Section 169(1) (a) to (f) of the CGST Act, makes it clear that any decision, order, summons, notice, or communication under the CGST Act and its rules can be served on the taxpayer through any one of the methods listed.
• Further observed that, section 169(1)(d) of the CGST Act recognizes availability of order on common GST portal as an effective manner of delivery of order.
• Noted that, in the present case the Assessment order was made available on common portal which is a valid mode of service as provided under section 169(1) of CGST Act.
• Held that, it is Petitioner’s duty to check and verify the common GST portal for any communication from Revenue Department and it was Petitioner’s fault to have failed to do so.
• Dismissed the writ filed by the Petitioner.

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