Ola Fleet Technologies Pvt. Ltd. vs. State of U.P. (22 July 2024)

Court: Allahabad High Court
Bench: Justice Saumitra Dayal Singh & Justice Donadi Ramesh
Case No.: Writ Tax No. 855 of 2024
Neutral Citation: 2024:AHC:116559-DB
Date of Order: 22 July 2024

📌 Background / Facts of the Case

• Ola Fleet Technologies Pvt. Ltd. received a Show Cause Notice (SCN) under the Goods and Services Tax (GST) law.

• Ola argued that:

  • The notice was issued without following mandatory procedure (no ASMT-10 notice as required under Rule 99, CGST Rules, 2017).

  • The order dated 12.07.2023 was not visible in the correct section of the GST portal. It appeared under “Additional Notices & Orders” instead of “View Notices & Orders”.

  • Because of this, Ola missed the appeal deadline.

  • Their reply and supporting documents were ignored, violating principles of natural justice.

📌 Key Issues Before the Court

1. Validity of Communication:

   • Was the GST order properly communicated to the assessee if it was not in the right tab of the GST portal?

2. Compliance with GST Law:

   • Was ASMT-10 (mandated under Rule 99 of CGST Rules) properly served before passing the assessment order?

3. Principles of Natural Justice:

   • Was it fair and legal to pass an order without considering Ola’s reply and annexures?

📌 Legal Principles & Case Law References

1. CGST Act, 2017

   • Section 75 → mandates proper service of notice and granting opportunity of hearing.

   • Section 169 → specifies valid modes of service of GST orders/notices.

2. CGST Rules, 2017

   • Rule 99 → requires issuance of ASMT-10 notice before assessment order.

3. Constitutional Principles

   • Article 14 → Right to equality before law.

   • Article 19(1)(g) → Right to carry on business fairly without arbitrary restrictions.

   • Principles of Natural Justice → Every person must get a fair opportunity to be heard.

4. Relevant Case Law

   • M/s Mohini Traders vs. State of U.P. (Writ Tax No. 551 of 2023, Neutral Citation 2023:AHC:115008-DB)

     • Held that if order is not properly visible on GST portal, it prejudices taxpayer’s right to appeal.

📌 Court’s Decision (In Simple Words)

• The Court gave benefit of doubt to Ola Fleet since order was not visible properly.

• Since the disputed tax amount was already deposited, no outstanding demand existed.

• Final Directions:

  1. The impugned order dated 12.07.2023 will be treated as a final notice.

  2. Ola must file a reply within two weeks.

  3. The department must issue a fresh notice giving at least 15 days’ clear time.

  4. A reasoned, speaking order must be passed within one month thereafter.

📌 Bold Extract from Order:
“The assessee may treat the impugned order as the final notice and submit his written reply within two weeks. Thereupon, the assessing officer may issue a fresh notice in the manner prescribed with at least fifteen days clear notice. Appropriate reasoned and speaking order may be passed within a further period of one month.” – Allahabad High Court (2024:AHC:116559-DB)

📌 What This Means for You (Layman’s Terms)

1. If your GST order is not properly visible on the GST portal (wrong tab, missing documents, etc.), you can challenge it.

2. If the department ignores your reply or annexures, the order is illegal.

3. You can file a Writ Petition in High Court citing:

   • Ola Fleet Technologies Pvt. Ltd. vs. State of U.P. (2024)

   • Mohini Traders vs. State of U.P. (2023)

4. Courts will likely give you relief and direct a fresh hearing.

📌 Remedies Available to Taxpayer

• File Objection with GSTN Helpdesk if order is not visible properly.

• File Writ Petition in High Court if natural justice is violated.

• Seek relief under Article 226 of Constitution (writ jurisdiction).

📌 How You Can Use This Case in Your Case

• Quote the Neutral Citation (2024:AHC:116559-DB) in your reply or petition.

• Argue that limitation period does not run if order is not properly communicated.

• Demand that the department must re-issue notice and consider your reply.

📌 Future Precautions for Taxpayers

• Regularly check and download all orders/notices from GST portal.

• Maintain acknowledgment proofs of replies and annexures uploaded.

• Raise technical glitches with GSTN Helpdesk immediately.

• Even if service is defective, try to file a precautionary reply.

📌 Applicability of this Judgment

• Passed by Allahabad High Court (Uttar Pradesh).

• Since it involves CGST Act (a central law applicable PAN-India), its reasoning is relevant in all states of India.

• Other High Courts may rely on it while dealing with similar GST disputes.

📌 Conclusion

This case reinforces an important taxpayer protection:
👉 If GST notices/orders are not properly communicated on the portal or replies are ignored, the entire order becomes questionable.
👉 Courts will protect taxpayers from arbitrary actions and ensure that fair hearing is given under GST law.