Madhya Pradesh High Court has delivered a significant ruling concerning the service of show cause notices under the Central Goods and Services Tax Act, 2017. The petitioner, Maple Overseas Trade Pvt. Ltd., challenged a demand order dated 10.03.2025 for the tax period 2022-23, issued under Sections 73 and 107 of the Act. The core grievance was that the show cause notice preceding the demand was not properly communicated, having been uploaded only under the ‘Additional Notices’ tab on the GST portal, which the petitioner did not access or become aware of in time to respond.
During the hearing, counsel for the petitioner relied on a previous decision of the coordinate Bench of the same Court in Singh Construction and Co. v. State of M.P. (WP No. 11483/2025), where similar facts were considered. In that case, the Court had set aside demand and appeal orders after finding that the taxpayer was unaware of the proceedings due to the notice being uploaded only under ‘Additional Notices and Orders’ rather than the main ‘View Notices and Orders’ section of the GST portal. The Court in Singh Construction had referred to several judgments of the Madras High Court and the Delhi High Court, which recognized that such portal architecture could result in taxpayers missing critical communications, thereby violating the principles of natural justice.
The Madras High Court, in particular, had observed that the GST portal’s design—placing notices under different headings—could lead to confusion and unintentional non-compliance. The Delhi High Court had similarly held that insufficient service of show cause notices, where taxpayers were not properly notified, amounted to a violation of natural justice.
In the present case, the State did not dispute the factual matrix or the applicability of the earlier ruling. The Madhya Pradesh High Court, therefore, adopted the reasoning and directions from Singh Construction, holding that the improper service of the show cause notice—by merely uploading it under ‘Additional Notices’—deprived the petitioner of an opportunity to respond. The Court set aside the impugned order dated 10.03.2025 and directed the authorities to reopen the portal, enabling the petitioner to file a response to the show cause notice within two weeks. The Proper Officer was instructed to re-adjudicate the matter after granting a personal hearing and to pass a fresh, reasoned order in accordance with Section 75(3) of the Act.
The Court clarified that it had not commented on the merits of the case and that all rights and contentions of the parties were reserved. This decision reinforces the requirement for tax authorities to ensure proper and effective communication of notices to taxpayers, and that technical deficiencies in portal notifications cannot override the fundamental principles of natural justice.
Case Reported at:
Case Name: Maple Overseas Trade Pvt. Ltd. v. State of Madhya Pradesh
Case Citation: (2026) taxcode.in 1121 HC
