Madras HC Reopens Electricals Dealer’s GST Case Over Missing Personal Hearing, Orders Bank Account Unfrozen After 25% Disputed-Tax Payment

The petitioner challenged a Form GST DRC-07 order dated 18 September 2025 for FY 2023–24 and sought removal of the attachment over its bank account.

It said that notices were uploaded under “View Additional Notices and Orders” on the GST portal, of which it was unaware, and that the assessment order was passed without a personal hearing.

The petitioner offered to pay 25% of the disputed tax in return for an opportunity to present its case.

The State submitted that the notices had been uploaded on the portal, but accepted that no personal hearing had been given; it supported remand subject to payment of 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 acknowledgement due (RPAD).

The Court observed that portal service is sufficient, but where a taxpayer does not respond to notices, the officer should consider other available modes of service to ensure effective notice; merely completing formalities may not achieve that purpose.

The Court also proceeded on the need to afford the taxpayer a personal hearing before fresh orders were made, and conditioned remand on payment of 25% of the disputed tax.

Although the notices had been uploaded to the GST portal, the petitioner said it had not become aware of them, and the State acknowledged that no personal hearing preceded the impugned order.

The Court considered that, where portal notices drew no response, the officer should have explored another mode under Section 169(1), preferably RPAD, rather than rely only on formal portal service.

In view of the absence of a personal hearing and the petitioner’s undertaking to pay 25% of the disputed tax, the Court found remand appropriate.

The petitioner must file its reply and supporting documents within three weeks of payment, after which the respondent must issue 14 clear days’ notice fixing a personal hearing and pass fresh orders on the merits and in accordance with law.

The bank attachment is to be lifted, and IDBI Bank must defreeze the account upon production of proof of payment and a copy of the order.

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