What Is The Difference Between 'Non-Service Of Notice' & 'Lack Of Knowledge Of Service Of Notice'? Kerala High Court Explains

“Lack of knowledge of service of notice can amount to a violation of principles of natural justice only in certain limited circumstances. When lack of knowledge is attributable to the default of the sender of the notice, then 'not noticing or lack of knowledge of service of notice' can amount to a negation of the principles of natural justice,” observed Justice Bechu Kurian Thomas.

In this case, a show-cause notice was issued to the assessee/petitioner under section 73(1) of the GST Act. The proceeding that resulted in the order was allegedly preceded by a notice as well, intimating certain discrepancies in the return filed.

The assessee pleaded that neither of the two notices nor the order of determination was served on the assessee and that it was unaware of the proceedings until the intimation of the recovery proceeding was uploaded in the portal.

According to the assessee, the show cause notice came to the knowledge of the assessee much later, as it was uploaded in the tab for 'Additional Notices and Orders' and not that provided for 'Notices and Orders' in the portal.

The assessee submitted that since the assessee had no reason to verify the tab for 'Additional Notices and Orders', when there was no prior notice, the impugned order of determination under section 73 of the Act was issued in violation of the principles of natural justice.

The department submitted that failure of the party to effectively navigate through the portal cannot be a reason to challenge the proceedings of the department and that there is no instance of violation of natural justice.

The bench noted that undoubtedly there is a distinction between 'non-service of notice' and 'not noticing or lack of knowledge of service of notice'. While the former is a case of a certain violation of the principles of natural justice, the latter cannot have such a legal effect in every situation.

The bench opined that “in the absence of specific notes or instructions given on the same page meant for 'Notices and Orders' or 'Additional Notices and Orders' it cannot be assumed that there has been an effective dissemination of information to taxpayers that the first notice regarding determination under section 73 or 74 of the GST Act will be uploaded only in the tab meant for 'Additional Notices and Orders'.”

The bench observed that the assessee was unaware of the notice and was even not properly served with the notices due to the vagueness of the system. Thus, neither any proper service of notice nor sufficient opportunity was granted to the assessee to contest the matter.

In view of the above, the bench allowed the petition and set aside the order.

Case Title: M/s Ramanattu Motor Corp. v. State of Kerala

Case Number: WP(C) NO. 23872 OF 2024

Citation: 2025 LiveLaw (Ker) 145

Counsel for Petitioner/ Assessee: G. Mini and A. Kumar

Click Here To Read/Download The Order