Madras HC Sets Aside GST Assessment After Portal-Only Notice And No Hearing, Conditional On Dealer Depositing 10% Of Disputed Tax

The petitioner challenged a summary order in Form GST DRC-07 and related proceedings dated 10 December 2025, made under Section 73 of the TNGST Act, 2017.

The petitioner said that the show-cause notice and personal-hearing notice had not been physically served and that the show-cause notice, uploaded to the GST Portal, had not come to its attention.

It also said that the impugned order was uploaded without a physical copy being furnished.

The petitioner sought a fresh opportunity to respond and offered to deposit 10% of the disputed tax demand.

The respondent did not oppose remand on that condition.

The Court considered the proceedings under Section 73 of the TNGST Act, 2017 and exercised its jurisdiction under Article 226 of the Constitution.

It applied the principles of natural justice, including the requirement to afford a meaningful opportunity to respond and be heard before an adverse order is made.

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

The Court accepted the petitioner’s account that the notices had been uploaded to the GST Portal but had not come to its attention, and noted that no reply had been received.

In those circumstances, it considered reliance on repeated portal uploads insufficient to ensure effective service, particularly where alternative statutory modes were available.

Because the petitioner had not been afforded a meaningful opportunity to establish its case, the Court found a breach of natural justice warranting remand.

The petitioner’s offer to deposit 10% of the disputed tax demand, accepted by the respondent as a condition for reconsideration, informed the terms of relief.

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

On receipt, the respondent must issue 14 days’ clear notice fixing a personal hearing and then pass a fresh order on the merits and in accordance with law, as expeditiously as possible.

The writ petition was disposed of without costs; the connected miscellaneous petitions were disposed of as specified in the order.