Madras HC Sets Aside Hardware Trader’s Ex-Parte GST Assessment For Rehearing On 25% Deposit, Says Officers Should Try Other Modes When Portal Notices Go Unanswered

The petitioner challenged the respondent’s assessment order dated 30 May 2026 and consequential Form DRC-07 for the period 2020–2021.

The petitioner stated that notices uploaded to the GST portal had not come to its attention and that it had therefore failed to respond.

It contended that the order was passed without a personal hearing and offered to pay 25% of the disputed tax to obtain a fresh consideration.

The respondent accepted that no personal hearing had been provided and agreed to remittal subject to payment of 25% of the disputed tax.

Article 226 of the Constitution empowers the High Court to grant appropriate relief where an administrative order is challenged.

Under Section 169(1) of the GST Act, service may be effected through the modes prescribed by that provision; although portal service is sufficient, where a taxpayer does not respond to notices sent through that mode, the authority should consider other prescribed modes—preferably registered post with acknowledgment due—to ensure effective service.

A personal hearing must be afforded where required before an adverse order is made.

The Court accepted that uploading the show-cause notice to the GST portal was a valid mode of service, but considered that the petitioner’s lack of response should have prompted the respondent to explore other modes of service under Section 169(1), rather than proceed to an ex parte assessment.

The respondent also admitted that no personal hearing had been provided.

In these circumstances, and given the petitioner’s willingness to pay 25% of the disputed tax, the Court found grounds to set aside the order and remit the matter for fresh consideration.

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

The respondent must then provide 14 clear days’ notice fixing a personal hearing and pass fresh orders on the merits and in accordance with law.

The writ petition was disposed of without costs, and the connected miscellaneous petition was closed.