Service of Notice via “Additional Notices/Orders” Tab & Unreasoned Rejection of Rectification
Case Name: Jindal Steel Limited v. Commissioner, Commercial Taxes & GST, Odisha & Anr. Citation: [TS-12-HC(ORI)-2026-GST] Court: High Court of Orissa Date of Judgment: January 08, 2026
1. Executive Summary
The Orissa High Court ruled in favor of the taxpayer, holding that uploading Show Cause Notices (SCN) or Orders solely under the “Additional Notices/Orders” tab on the GST Portal does not constitute valid service. The Court found this practice to be a flagrant violation of the principles of natural justice as the tab is not prominent or easily accessible. Furthermore, the Court deprecated the practice of rejecting rectification applications (Section 161) without providing specific reasons.
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2. Brief Facts
- The Dispute: The GST department raised a demand against Jindal Steel Ltd. based on a mismatch between liability declared in returns (GSTR-3B) and figures in the E-way Bill portal.
- The Procedural Lapse: The department issued notices and eventually passed an ex parte assessment order under Section 73. However, these documents were uploaded only under the “Additional Notices/Orders” tab on the portal. The taxpayer was unaware of the proceedings and failed to participate.
- Rectification Rejected: Upon discovering the order, the taxpayer filed a rectification application under Section 161 to correct the figures. The officer rejected this application summarily without assigning any reasons.
3. Key Rulings & Observations
- Invalid Service of Notice: The Court observed that the “Additional Notices/Orders” tab is not easily accessible or prominent. Therefore, mere uploading of notices under this specific tab cannot be treated as valid service or “communication” under Section 169 of the GST Act. Proceeding ex parte on this basis violates the principles of natural justice.
- Duty to Pass Reasoned Orders: The Court heavily criticized the tax officer for dismissing the rectification application with a “bald, laconic” order. It emphasized that “Reason is the heartbeat of every decision-making process.” Even if the taxpayer does not appear, the officer is duty-bound to examine the material/data available on record before passing an adverse order.
- Rectification Scope: The Court noted that the officer should have realized the genuine reason for the taxpayer’s non-appearance (improper service mode) and addressed the merits of the rectification application rather than dismissing it mechanically.
4. Final Decision
- The High Court quashed and set aside both the ex parte assessment order (dated 06.01.2025) and the order rejecting the rectification application (dated 20.06.2025).
- The matter has been remanded to the Proper Officer to reconsider the rectification application and pass a reasoned order.
5. Key Takeaways for Clients
- Vigilance on Portal: While this judgment is favorable, it is advisable to regularly check all tabs on the GST portal, including “Additional Notices/Orders,” to avoid missing critical communications.
- Defense Against Ex-Parte Orders: This ruling serves as a strong precedent to challenge demands where the only form of service was an upload to the “Additional Notices/Orders” tab.
- Right to Reasoned Orders: Tax authorities cannot reject applications (like rectification petitions) without providing specific reasons. Any such summary rejection is liable to be set aside by higher courts.