GST Trader Gets Fresh Hearing After Madras HC Sets Aside Assessment Over Portal-Only Notices And No Personal Hearing, If He Pays 25% Of Disputed Tax

In brief

The question

Whether the assessment order should be set aside where the petitioner had not responded to notices uploaded on the GST portal and was not given a personal hearing.

The court held

The Court set aside the assessment order and remanded the matter for fresh consideration, conditional on the petitioner paying 25% of the disputed tax, less any amount already paid, within four weeks of receiving the order.

It also directed

The setting aside takes effect from the date of payment.

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

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

The writ petition was disposed of with no order as to costs.

01Facts

The petitioner challenged an assessment order dated 30 October 2025.

pp. 1–3, 5

The show-cause notice and other communications had been uploaded to the GST portal, but the petitioner said it had not seen them and had not received the original notice.

pp. 1–3, 5

The respondent acknowledged that no personal hearing had been provided before the assessment order was passed.

pp. 1–3, 5

The petitioner sought a remand and offered to pay 25% of the disputed tax, after crediting amounts already paid.

pp. 1–3, 5

The writ petition was disposed of at the admission stage by consent.

p. 2

02Issues

i.Whether the assessment order should be set aside where the petitioner had not responded to notices uploaded on the GST portal and was not given a personal hearing.

pp. 2–4

ii.Whether, and on what conditions, the matter should be remanded for fresh consideration.

p. 5

03Law Applied

Section 169(1) of the GST Act recognises multiple valid modes of service, including service by uploading communications to the common portal.

pp. 3–4

The Court held that portal service may be sufficient, but where a taxpayer does not respond to notices sent through one mode, the issuing officer should consider other modes available under Section 169(1), preferably registered post with acknowledgment due (RPAD), to ensure effective service.

pp. 3–4

The Court also treated the absence of a personal hearing in the circumstances of this case as a procedural deficiency warranting a fresh opportunity to be heard.

pp. 3–4

No precedent was cited.

pp. 3–4

Provisions in the judgment · 1 · Linked ones open on LawLens

Central Goods and Services Tax Act, 2017 Section 169

04Reasoning

Although the show-cause notice had been uploaded to the GST portal, the petitioner claimed it was unaware of the notice, and the respondent conceded that no personal hearing had been afforded.

pp. 3–5

The Court considered that, when repeated notices receive no response, the officer should explore other statutory service methods rather than proceed solely on portal service; otherwise, service may amount to an empty formality.

pp. 3–5

In light of the petitioner’s willingness to pay 25% of the disputed tax, subject to credit for prior payments, the Court found it appropriate to set aside the assessment and remit the matter.

pp. 3–5

05Holding

pp. 5–6

The setting aside takes effect from the date of payment.

pp. 5–6

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

pp. 5–6

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

pp. 5–6

The writ petition was disposed of with no order as to costs.

pp. 5–6

LawLens.Madras High Court

Original Court PDF