Madras HC Sets Aside Brickmaker’s GST Assessment After Portal-Only Notice, Conditional On 25% Disputed-Tax Deposit And Fresh Hearing

The petitioner challenged the respondent’s assessment order dated 16 December 2025, together with the consequential Form GST DRC-07, for the period April 2021 to March 2022.

The petitioner claimed that the show-cause notice and personal-hearing notice had only been uploaded to the GST Portal, that no physical copies were received, and that the petitioner consequently had no opportunity to respond or be heard.

The petitioner offered to deposit 25% of the disputed tax demand and sought a remand for consideration of its reply.

The respondent did not oppose reconsideration on that condition.

The Court applied the principles of natural justice, particularly the requirement to provide an effective opportunity to respond and be heard before making an adverse decision.

It also observed that where the statute provides alternative modes of service, the authority should adopt an effective mode rather than repeatedly relying on uploads and reminders on the common portal when no response is received.

Exercising its jurisdiction under Article 226, it made remand conditional on the petitioner’s undertaking to deposit 25% of the disputed tax demand.

The Court noted that the show-cause notice had been uploaded to the GST Portal and that the petitioner claimed not to have known of it; no reply had been received before the assessment order was passed.

Given the availability of alternative modes of service, the Court considered that relying solely on portal uploads had not ensured an effective opportunity to respond.

It therefore found that the absence of a personal hearing violated natural justice and that the petitioner should be allowed to establish its case on the merits.

The petitioner’s offer to deposit 25% of the disputed tax, accepted as a condition for reconsideration, informed the terms of remand.

The petitioner must file its reply and supporting documents within two weeks thereafter.

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

Upon proof of payment, the concerned bank was directed to defreeze the petitioner’s bank account and inform the respondent.

The writ petition was disposed of without costs.