Before ex parte assessment, officers must explore alternative statutory service modes after portal nonresponse.

The petitioner challenged an assessment order dated 9 May 2023, issued in Form GST DRC-07, contending that notices had been uploaded to the GST portal but were not seen, and that no personal hearing was provided before the order was passed.

The petitioner stated that an amount had already been paid and offered to pay 50% of the disputed tax, after credit for payments made, if given an opportunity to present its case.

The respondent acknowledged that no personal hearing had been provided and requested remand subject to payment of 50% of the disputed tax.

1. Whether the assessment order should be set aside and the matter remanded where notices were uploaded to the GST portal, the petitioner did not respond, and no personal hearing was provided.

2. Whether remand should be made conditional on payment of 50% of the disputed tax, after deducting amounts already paid.

The Court considered Section 169(1) of the GST Act, which provides for valid modes of service of notices and other communications.

It held that portal upload constitutes sufficient service, but where a taxpayer does not respond to notices sent through one mode, the officer should explore other modes prescribed by Section 169(1), preferably registered post with acknowledgment due (RPAD), to achieve effective service and avoid merely formal compliance.

The judgment cited no precedent.

Although the show-cause notice had been uploaded to the GST portal, the petitioner claimed it was unaware of the notice, and the assessment order confirmed the proposals without a personal hearing.

The Court did not treat portal service as invalid; rather, it found that the absence of any response should have prompted the officer to consider other available service modes.

It also took account of the respondent’s acknowledgment that no personal hearing had been given and the petitioner’s offer to pay 50% of the disputed tax, subject to credit for prior payments.

The petitioner must file its reply and supporting documents within three weeks of payment.

The respondent must then give 14 clear days’ notice of a personal hearing, consider the petitioner’s submissions, and pass a fresh order on the merits and in accordance with law.

The petition was disposed of without costs, and the connected miscellaneous petition was closed.