Madras HC Remands Landscaper’s GST Case After No Personal Hearing, Subject To 15% Disputed-Tax Deposit

The petitioner challenged an assessment order dated 10 December 2025 and an appellate rejection order dated 20 May 2026 concerning FY 2021–22.

Notices had been uploaded to the GST portal, but the petitioner said it had not seen them and had not received the show-cause notice otherwise. The assessment was made without a personal hearing; the petitioner’s appeal was rejected.

The petitioner had paid 10% of the disputed tax and offered to pay a further 15%.

The Court referred to Section 169(1) of the GST Act, under which service through the modes specified in that provision is valid; it identified registered post with acknowledgement due (RPAD) as a preferable alternative where a taxpayer does not respond to portal notices.

The Court also proceeded on the requirement that the taxpayer receive an effective opportunity to be heard before an adverse assessment is confirmed, particularly where no personal hearing was provided.

Although portal service was legally sufficient, the Court considered that the absence of any response to notices should have prompted the officer to explore other modes of service permitted by Section 169, rather than proceed through what the Court described as empty formalities.

The assessment confirmed the show-cause proposals without a personal hearing, and the State’s counsel acknowledged that no such hearing had been provided. In light of these circumstances and the petitioner’s offer to pay an additional 15% of the disputed tax, the Court set aside the assessment and appellate rejection and remitted the matter for fresh consideration.

The setting aside takes effect upon payment of the further 15% of the disputed tax within four weeks; the petitioner must then file its reply within three weeks. The authority must issue 14 days’ clear notice fixing a personal hearing and decide the matter on the merits and in accordance with law.

The bank was directed to defreeze the petitioner’s account upon production of the order and proof of payment. W.P. No. 44455 of 2026 was disposed of and W.P. No. 44450 of 2026 was allowed.