Madras HC Sets Aside GST Firm’s Ex Parte Assessment On 25% Deposit, Says Officers Should Try RPAD After Unanswered Portal Notices

The petitioner challenged an ex parte assessment order dated 21 August 2024.

Notices had been uploaded to the GST portal, but the petitioner said it was unaware of them and had not received the show-cause notice.

The respondent acknowledged that no personal hearing had been provided.

The petitioner offered to pay 25% of the disputed tax in return for an opportunity to present its case.

The Court considered Section 169(1) of the GST Act, which provides for modes of service of notices and orders.

Uploading a notice on the GST portal is a valid mode of service; however, where the taxpayer does not respond to notices sent through that mode, the officer should consider other modes of service available under Section 169(1), preferably registered post with acknowledgment due (RPAD), to ensure effective notice.

The Court cited no precedents.

Although portal service was valid, the absence of any response should have prompted the officer to explore other available service methods.

The Court considered that the assessment had been made without a personal hearing and that the petitioner claimed not to have known of the show-cause notice.

In these circumstances, it found that the service efforts were insufficient and accepted the petitioner’s offer to pay 25% of the disputed tax as a condition for remand.

The petitioner must file its reply and supporting documents within three weeks of payment.

Upon receipt, the respondent must give 14 clear days’ notice fixing a personal hearing and then pass a fresh order on the merits and in accordance with law.

The writ petition was disposed of without costs.