GST officers should explore alternative statutory service modes when portal notices go unanswered.

The respondent passed an assessment order in Form GST DRC-07 for FY 2021–22, confirming the proposals in a show-cause notice uploaded to the GST portal.

The petitioner’s case was that its auditor had not viewed the portal and that it was unaware of the notices; it had not filed a reply.

The petitioner challenged the order, stating that no personal hearing had been provided and offering to pay 25% of the disputed tax.

The respondent accepted that no personal hearing had been given and agreed to remand subject to that payment.

The Court noted that the notice had been uploaded on the portal and that the petitioner had not responded.

Whether the assessment order should be set aside and the matter remitted where notices were uploaded to the GST portal but no personal hearing was provided.

Whether remand should be conditional on the petitioner paying 25% of the disputed tax.

Section 169(1) of the GST Act recognises prescribed modes of service, including service through the GST portal and other modes such as registered post with acknowledgment due (RPAD).

The Court observed that, although portal service is sufficient, where a taxpayer does not respond to notices sent through that mode, the officer should consider other available modes to secure effective service, preferably RPAD.

The Court also applied the requirement of a fair opportunity to be heard before making the assessment; it cited no precedent or separate statutory provision governing the personal hearing.

The Court accepted that portal service is legally sufficient, but considered that repeated non-response should have prompted the respondent to explore other modes under Section 169(1), rather than proceed ex parte without a personal hearing.

The respondent’s acknowledgment that no personal hearing had been afforded, together with the petitioner’s offer to pay 25% of the disputed tax, supported setting aside the order and remanding the matter on conditions.

The petitioner must pay 25% of the disputed tax within four weeks of receiving the order; the setting aside takes effect upon payment.

The petitioner must file objections and supporting documents within three weeks thereafter.

On receipt, the respondent must give 14 days’ clear notice fixing a personal hearing and then pass a fresh order on merits and in accordance with law.

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