Madras HC Reopens Tyre Dealer’s GST Assessment On 25% Of Disputed Tax, Says Officers Should Try Other Notice Modes After Portal Silence

In brief

The question

1. Whether the assessment order should be set aside where the notices were uploaded to the GST portal, the petitioner did not respond, and no personal hearing was provided

The court held

The writ petition was disposed of, and the assessment order dated 16 March 2026 was set aside subject to the petitioner paying 25% of the disputed tax within four weeks of receiving the order; the setting aside takes effect upon payment, with any amount already recovered or deposited adjustable against that payment.

It also directed

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

The respondent must then provide 14 clear days’ notice fixing a personal hearing and pass a fresh order on the merits and in accordance with law.

No costs were ordered.

01Facts

The petitioner challenged an assessment order dated 16 March 2026, contending that notices uploaded under the GST portal’s “View Additional Notices and Orders” tab had not come to its attention and that no personal hearing was provided before the assessment order was made

pp. 2–3

The respondent acknowledged that no personal hearing had been afforded and agreed to remand the matter subject to the petitioner paying 25% of the disputed tax

p. 3

The petitioner also undertook to make that payment.

p. 3

02Issues

i.1. Whether the assessment order should be set aside where the notices were uploaded to the GST portal, the petitioner did not respond, and no personal hearing was provided

pp. 2–4

ii.2. Whether remand should be conditioned on payment of 25% of the disputed tax

p. 3, 5

03Law Applied

Section 169(1) of the GST Act provides for valid modes of service of notices and orders, including modes beyond uploading them to the GST portal.

p. 4

Portal service is sufficient, but where a taxpayer does not respond to notices sent through that mode, the officer should consider other available statutory modes—preferably registered post with acknowledgment due—to make service effective and avoid merely formal, ex parte proceedings.

pp. 4–5

The Court also proceeded on the requirement that the petitioner be given a personal hearing before fresh orders are passed.

p. 5

Provisions in the judgment · 1

Goods and Services Tax Act Section 169

04Reasoning

Although uploading the show-cause notice to the GST portal constituted a valid mode of service, the petitioner’s lack of response called for the officer to consider other modes available under Section 169(1), rather than proceed solely on the portal notices.

pp. 4–5

The Court also noted that no personal hearing had been provided, and that the respondent accepted remand subject to payment of 25% of the disputed tax.

p. 3, 5

In those circumstances, the Court set aside the assessment order conditionally and directed fresh consideration after payment and filing of objections.

p. 5