Madras HC Remands GST Assessment For Fresh Hearing On 25% Deposit, Says Officers Should Try Other Service Modes After Portal Silence

The petitioner challenged the respondent’s assessment order dated 22 July 2024 and consequential Form GST DRC-07 for the tax period April 2019 to March 2020.

The petitioner said it had not seen notices uploaded to the GST portal and therefore had not replied; the respondent acknowledged that no personal hearing had been given.

The petitioner offered to pay 25% of the disputed tax, after credit for amounts already paid, and the respondent agreed to remand on that condition.

Section 169(1) of the GST Act recognises the prescribed modes of service, including service through the GST portal and other authorised modes.

Although portal service is sufficient, where a taxpayer does not respond to notices sent through one mode, the authority should consider other prescribed modes—preferably RPAD—to secure effective service; merely completing formalities before passing an ex parte order may not achieve that purpose.

The Court also proceeded on the respondent’s acknowledgment that no personal hearing had been provided.

The Court accepted that the show-cause notice had been uploaded to the portal, but considered the petitioner’s stated lack of awareness alongside the absence of a personal hearing.

It held that, despite repeated non-response, the respondent should have explored other modes of service available under Section 169(1), rather than relying only on portal upload before making an ex parte assessment.

Given this service concern and the petitioner’s undertaking to pay 25% of the disputed tax after credit for prior payments, the Court found remand appropriate.

The petitioner must pay 25% of the disputed tax, less amounts already paid, within four weeks of receiving the order; the setting aside takes effect from payment.

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

Upon receipt, the respondent must give 14 days’ clear notice fixing a personal hearing and thereafter decide the matter on its merits and in accordance with law.

The writ petition was disposed of without costs; the miscellaneous petition to dispense with production of the original assessment order was ordered, and the other miscellaneous petition was closed.