In a recent decision, the Orissa High Court addressed the validity of service of notices and orders under the GST framework in the case of Jindal Steel Limited vs. Commissioner, Commercial Taxes & GST, Odisha. The petitioner, a manufacturer of iron and steel products, had filed returns for the fiscal year 2020-21. Discrepancies were alleged by the Proper Officer between the filed returns and E-Way Bill data, leading to the issuance of notices which were uploaded solely under the “Additional Notices/Orders” tab on the GST portal.
The petitioner claimed that these notices were never effectively communicated, resulting in an inability to participate in the proceedings, which culminated in an ex parte order under Section 73 of the GST Act. A rectification application under Section 161 was also rejected without a hearing.
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The Court ruled that uploading notices and orders under a less accessible section of the GST portal does not constitute valid service under Section 169 of the GST Act. This failure to effectively communicate deprived the petitioner of the opportunity to respond, violating principles of natural justice. The Court found the rejection of the rectification application without reasons or a hearing to be arbitrary. Consequently, the ex parte order and the rectification rejection were quashed, and the case was remanded for reconsideration with a mandate to provide the petitioner a fair hearing and a reasoned decision.
Parties: Jindal Steel Limited Vs. Commissioner, Commercial Taxes & GST, Odisha & Anr.
Order Date: 08 January 2026
Facts –
- The petitioner, engaged in manufacture of iron and steel products, filed GSTR-9 and GSTR-9C for FY 2020–21, disclosing taxable and non-taxable turnover along with corresponding tax liabilities.
- The Proper Officer alleged discrepancies between GSTR-3B returns and E-Way Bill data and issued Form GST ASMT-10 and a demand-cum-show cause notice in Form GST DRC-01, which were uploaded only under the “Additional Notices/Orders” tab on the GST portal.
- The petitioner asserted that it never received actual or effective notice of the proceedings and, consequently, could not participate, resulting in an ex parte order under Section 73 of the GST Act dated 06.01.2025.
- An application for rectification under Section 161 was subsequently filed by the petitioner but was rejected by a non-speaking order dated 20.06.2025 without granting any opportunity of hearing.
Issue –
- Whether uploading show cause notices and adjudication orders solely under the “Additional Notices/Orders” tab on the GST portal constitutes valid service under Section 169 of the GST Act?
Order –
- The Orissa High Court held that mere uploading of notices and orders under the “Additional Notices/Orders” tab, which is not easily accessible or prominent, does not amount to valid service under Section 169 of the GST Act.
- The Court observed that failure of effective communication deprived the petitioner of a meaningful opportunity to respond, rendering the ex parte order under Section 73 violative of principles of natural justice.
- It was further held that rejection of the rectification application under Section 161 without reasons or hearing was arbitrary and unsustainable in law.
- Accordingly, the High Court quashed both the ex parte adjudication order dated 06.01.2025 and the rectification rejection order dated 20.06.2025.
- The matter was remanded to the Proper Officer with directions to grant the petitioner a reasonable opportunity of hearing, consider the material available on record, and pass a reasoned order in accordance with law.
