Madras HC Sets Aside Trader’s GST Assessment For Fresh Hearing On 10% Payment, Says Officers Should Try Other Service Modes When Portal Notices Go Unanswered

The petitioner challenged an assessment order dated 4 December 2025 and consequential Form GST DRC-07 for the assessment year 2021–2022.

She said notices had been uploaded to the GST portal, which she had not checked, and that she therefore did not submit a reply; she also contended that the assessment was made without a personal hearing.

She offered to pay 10% of the disputed tax to obtain a fresh hearing.

The respondents confirmed that notices were uploaded to the portal, acknowledged that no personal hearing had been provided, and agreed to remand subject to payment of 10% of the disputed tax.

Section 169(1) of the GST Act provides for modes of service, including service through the GST portal and other prescribed modes.

The Court accepted that uploading a notice to the portal constitutes sufficient service; however, where a taxpayer does not respond, the officer should consider other available modes of service—preferably registered post with acknowledgment due (RPAD)—to ensure effective notice rather than merely completing formalities.

The Court also relied on the requirement of a meaningful opportunity to respond and be heard before the matter is decided.

Although the show-cause notice had been uploaded to the GST portal, the petitioner said she was unaware of it, and the assessment was confirmed without a personal hearing. The respondents admitted that no hearing had been provided.

The Court reasoned that, when portal notices receive no response, the officer should explore other modes permitted by Section 169(1), since portal upload alone may not achieve effective service in the circumstances.

In view of the lack of a personal hearing and the petitioner’s offer to pay 10% of the disputed tax, the Court considered remand appropriate on that condition.

The petitioner must file objections and supporting documents within three weeks after payment; the first respondent must then give 14 days’ clear notice of a personal hearing and pass a fresh order on the merits and in accordance with law.

The bank must defreeze the petitioner’s account upon production of the order and proof of payment.

The petition was disposed of with no costs; the specified miscellaneous petitions were closed, and the application to dispense with production of the original assessment order was ordered.