Madras HC Sets Aside GST Assessment For Fresh Hearing, Says Officers Should Try Other Notice Modes When Portal Notices Go Unanswered

In brief

The question

Whether the assessment order should be set aside where the notices were uploaded to the GST portal but the petitioner received no personal hearing

The court held

The Court set aside the assessment order dated 1 August 2024 and remanded the matter to the respondent for fresh consideration

It also directed

The petitioner was directed to file its reply and supporting documents within three weeks of receiving the Court’s order.

Upon receipt, the respondent must issue 14 clear days’ notice fixing a personal hearing, consider the petitioner’s submissions, and pass a fresh order on the merits and in accordance with law

The writ petition was disposed of without costs

01Facts

The petitioner challenged the respondent’s assessment order dated 1 August 2024 for April 2019–March 2020.

pp. 1–3

The notices were uploaded on the GST portal, but the petitioner said it had not seen them and had not received the original show-cause notice.

pp. 1–3

The petitioner consequently did not respond within time, and the assessment order was passed without a personal hearing.

pp. 1–3

It also submitted that it had paid more than 45% of the disputed tax

pp. 1–3

The respondent acknowledged that no personal hearing had been provided and agreed that the matter could be remitted

p. 3

02Issues

i.Whether the assessment order should be set aside where the notices were uploaded to the GST portal but the petitioner received no personal hearing

pp. 2–4

ii.Whether, in the circumstances, the matter should be remitted for fresh consideration

pp. 3–5

03Law Applied

Section 169 of the GST Act recognises prescribed modes of service, including service through the GST portal and other available modes.

pp. 3–4

Although portal service is sufficient, where a taxpayer does not respond to notices sent through that mode, the officer should consider other prescribed modes—preferably registered post with acknowledgment due—to make service effective

pp. 3–4

The Court also applied the principles of fair hearing and natural justice, requiring an opportunity for personal hearing before the matter is decided

pp. 2–3, 5

Provisions in the judgment · 1

Goods and Services Tax Act Section 169

04Reasoning

The Court accepted that uploading the show-cause notice to the GST portal constituted a valid mode of service.

pp. 3–4

However, given the petitioner’s non-response, the officer should have considered other modes of service under Section 169 rather than proceeding ex parte without a personal hearing

pp. 3–4

The respondent’s acknowledgment that no hearing was provided, together with the petitioner’s submission that it had paid more than 45% of the disputed tax, supported setting aside the order and remitting the matter

pp. 3, 4–5

05Holding

The Court set aside the assessment order dated 1 August 2024 and remanded the matter to the respondent for fresh consideration

p. 5

The petitioner was directed to file its reply and supporting documents within three weeks of receiving the Court’s order.

p. 5

Upon receipt, the respondent must issue 14 clear days’ notice fixing a personal hearing, consider the petitioner’s submissions, and pass a fresh order on the merits and in accordance with law

p. 5

The writ petition was disposed of without costs

p. 5

LawLens.Madras High Court

Original Court PDF