Madras HC Sets Aside Builder’s GST Assessment After Portal-Only Notices, But Requires 25% Deposit Before Fresh Hearing

The petitioner challenged an assessment order dated 5 December 2025, issued under Section 73 of the GST legislation and communicated in Form GST DRC-07, for FY 2021–22.

It contended that the show-cause notice and personal-hearing notice had only been uploaded to the GST Portal and that no physical copies were served; it also stated that it had not received a physical copy of the final order.

The petitioner sought an opportunity to respond and be heard, and offered to deposit 25% of the disputed tax demand.

The respondent agreed to reconsider the matter on that condition.

The Court applied the principles of natural justice, including the requirement that a taxpayer receive a fair opportunity to respond and be heard before an adverse assessment is made.

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

The Court referred generally to the GST statutory framework and the assessment under Section 73, but cited no specific statutory service provision or judicial precedent.

The show-cause notice had been uploaded to the GST Portal, but the petitioner said it had not become aware of the notice and had received no physical copy.

Given the absence of a response, the Court considered that the respondent should have used an effective mode of service, particularly because alternative statutory modes were available.

It concluded that the petitioner had not been afforded a proper opportunity to establish its case, including through a personal hearing, and that reconsideration was warranted.

The petitioner’s offer to deposit 25% of the disputed tax provided the condition for setting aside the order.

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

The respondent must then issue 14 days’ clear notice fixing a personal hearing, consider the petitioner’s response, and pass a fresh order on the merits and in accordance with law.

The writ petition was disposed of without costs; the connected applications were disposed of as stated in the order.