In a recent ruling, the Madras High Court (Madurai Bench) addressed the issue of whether uploading an order on the GST portal alone is sufficient to trigger the limitation period for filing an appeal. The case involved Sharp Tanks and Structurals Pvt. Ltd., which was subjected to a surprise inspection, resulting in adjudication orders imposing tax, interest, and penalties. These orders were uploaded on the GST portal, but the petitioner claimed they were not otherwise served, preventing them from filing a timely appeal.
Read More: GST - Allahabad High Court - Uploading orders under incorrect portal categories (like “additional notices”) deprives the assessee of effective communication and cannot be treated as valid service
The court examined the distinction between "service" and "communication" under the GST Act, emphasizing that effective communication requires the order to reach the assessee. The court concluded that merely uploading the orders on the portal does not constitute valid communication to start the limitation period for appeals. As the orders were not properly communicated, the limitation period had not commenced. The court directed the respondents to ensure proper communication of the orders to the petitioner, allowing them to file an appeal within the statutory time frame.
The ruling also highlighted the digital divide and practical challenges faced by small businesses, suggesting potential reforms to the GST portal, such as OTP-based acknowledgments, dashboard alerts, and postal communication in certain cases. The decision underscores the importance of clear and effective communication in legal proceedings to ensure fairness and access to justice for all parties involved.
Order date: 17 Sept 2025
Parties: Sharp Tanks and Structurals Pvt. Ltd. v. Deputy Commissioner (GST) (Appeals) & Anr.
Facts -
- Petitioner, a registered assessee, was subjected to surprise inspection (Nov 2022). SCNs under Section 74 TNGST Act issued on 28.02.2023 for FY 2020–21 and 2021–22.
- Petitioner replied and attended hearing, but adjudication orders were passed on 28.02.2024 imposing tax, interest, and penalty.
- Orders were uploaded only on the GST portal; petitioner claimed they were never served otherwise. Due to lack of knowledge, appeal under Section 107 could not be filed within the prescribed time.
- Petitioner filed writ petitions challenging the orders and seeking permission to pursue statutory appeal.
Issue -
- Whether uploading an order on the GST portal alone constitutes sufficient “communication” under Section 107 CGST/TNGST Act to trigger limitation for filing appeal?
Order -
- The Court distinguished between “service” (Section 169) and “communication” (Section 107); communication implies effective intimation reaching the assessee.
- It held that mere uploading on GST portal may be a mode of service but does not automatically constitute valid communication in every case.
- In this case, since orders were only uploaded on the portal and never otherwise intimated, limitation period for appeal had not started. Respondents directed to properly communicate the impugned orders to the petitioner. Thereafter, petitioner is free to file appeal within statutory time.
- Court also noted digital divide and practical difficulties for small businesses; suggested reforms in GST portal (OTP-based acknowledgment, dashboard alerts, postal communication in cancellation cases).
