GST authorities must ensure effective notice service and a hearing before making adverse assessments.

The petitioner challenged the respondent’s assessment order dated 18 March 2024, made in proceedings for 2018–19 and communicated in Form GST DRC-07.

The petitioner contended that the show-cause notice and hearing notice had only been uploaded to the GST portal, that no physical copies had been received, and that the order was passed without an effective opportunity to respond or be heard.

The petitioner offered to deposit 25% of the disputed tax and sought an opportunity to file objections and attend a personal hearing. The respondent did not oppose remand on that condition.

Whether the assessment order should be set aside where the petitioner claimed not to have received the portal-uploaded notices and was not afforded an effective opportunity to be heard.

Whether setting aside the order and remanding the matter could be conditioned on the petitioner depositing 25% of the disputed tax.

The Court applied the principles of natural justice, including the requirement that a person affected by an assessment be afforded a meaningful opportunity to present their case and a personal hearing.

It also observed that where the statute provides alternative modes of service, the authority should adopt an effective mode—particularly when no response is received—rather than repeatedly relying only on uploads to the common portal.

The Court noted that the show-cause notice had been uploaded to the GST portal and accepted the petitioner’s claim that no physical copy was served and that the petitioner was unaware of the notice.

In the absence of a reply, the respondent should have used an effective available mode of service; the Court considered that reliance on portal uploads alone, in the circumstances, left the petitioner without an opportunity to establish the case at a personal hearing.

The resulting denial of an opportunity to be heard warranted setting aside the order and reconsideration, subject to the petitioner’s offered deposit.

The petitioner must file objections and supporting documents within two weeks thereafter. On receipt, the respondent must issue 14 clear days’ notice fixing a personal hearing and then decide the matter on the merits and in accordance with law.

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