Madras HC Reopens Shipping Firm’s GST Assessment on ₹15,000 Payment, Says Officers Must Try Other Notice Modes When Portal Notices Draw No Response

The petitioner challenged a Form GST DRC-07 assessment order dated 30 October 2023, passed under Section 73 of the CGST/TNGST Acts for FY 2020–2021.

The notices had been uploaded to the GST portal, but the petitioner said it had not seen them and had therefore not replied.

The respondent acknowledged that no personal hearing had been provided.

The petitioner sought a fresh opportunity to respond and offered to pay ₹15,000; the respondent consented to remittal subject to that payment.

A bank account attachment was also in issue

Section 73 of the CGST/TNGST Acts was the statutory basis for the impugned assessment.

Under Section 169(1), service through the GST portal is a valid mode of service, but the Court stated that where a taxpayer does not respond to notices sent through one mode, the officer should consider other modes permitted by the provision, preferably registered post with acknowledgement due, to achieve effective service.

The Court also applied the requirement of a meaningful opportunity to be heard before an adverse assessment is made.

Although portal service was legally sufficient, the Court considered that the petitioner had not become aware of the notice and that no personal hearing had been afforded.

The respondent’s acknowledgment of the absence of a hearing, together with the lack of efforts to explore other available modes of service despite the petitioner’s non-response, led the Court to find that the assessment process had not provided an effective opportunity to participate.

It therefore accepted remittal on the condition that the petitioner pay ₹15,000

The petitioner must file its reply and supporting documents within three weeks of payment; the respondent must then give 14 clear days’ notice of a personal hearing and decide the matter on its merits and in accordance with law.

The setting aside takes effect upon payment.

The bank account must be de-frozen upon production of the order and proof of payment.

The writ petition was disposed of without costs.