Madras HC Says GST Officers Should Try Other Notice Modes After Portal Notices Go Unanswered, Sets Aside Assessment Subject To 15% Disputed-Tax Payment

The first respondent passed an assessment order under Section 73 of the GST Act for FY 2021–22 after notices were uploaded to the GST portal.

The petitioner said it had not seen the notices and had no opportunity to be heard. Its appeal was rejected as time-barred.

Before the High Court, the petitioner stated that it had paid 10% of the disputed tax and was willing to pay a further 15%. The respondents accepted that no personal hearing had been provided and did not oppose remittal subject to payment of the additional 15%.

The petitioner sought to quash both orders and have the matter reconsidered.

Section 169(1) of the GST Act recognises the prescribed modes of service, including service through the common portal; the Court acknowledged that portal upload constitutes sufficient service.

However, where a taxpayer does not respond to notices sent through one mode, the issuing officer should consider other available modes under Section 169(1), preferably registered post with acknowledgement due (RPAD), to achieve effective service rather than merely fulfil formal requirements.

The Court also treated the absence of a personal hearing, which the respondents acknowledged, as a relevant procedural deficiency warranting reconsideration.

No precedent was cited.

Although the show-cause notice had been uploaded to the GST portal, the Court considered the petitioner’s asserted lack of awareness alongside the absence of a personal hearing.

It reasoned that, when there is no response to portal notices, the officer should explore other statutory modes of service; merely uploading notices and proceeding ex parte may amount to an ineffective formality and contribute to avoidable litigation.

In light of that deficiency and the petitioner’s undertaking to pay an additional 15% of the disputed tax, the Court found it appropriate to set aside the assessment and quash the appellate rejection.

The petitioner must pay 15% of the disputed tax within four weeks; the setting aside takes effect from the date of payment. The petitioner must file its reply and supporting documents within three weeks after payment.

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

The writ petition was disposed of without costs.