No Personal Hearing: Madras HC Sets Aside Baker’s GST Assessment For Fresh Hearing, Orders Attached Bank Accounts Defrozen

The petitioner challenged an assessment order dated 24 November 2025 and a consequential bank-attachment order dated 23 March 2026.

The notices had been uploaded to the GST portal, but the petitioner said she had not seen them and had not received the original show-cause notice.

The respondent acknowledged that no personal hearing had been afforded before the assessment order was passed.

The petitioner also submitted that she had paid more than 40% of the disputed tax.

The matter was heard at the admission stage by consent.

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

Although portal service is sufficient, where a taxpayer does not respond to notices sent through that mode, the officer should consider other available modes under Section 169(1), preferably registered post with acknowledgment due (RPAD), to secure effective service and avoid merely formal, ex parte proceedings.

The Court also proceeded on the requirement that the petitioner be given a personal hearing before fresh orders were made.

The Court noted that the show-cause notice had been uploaded to the GST portal, but the petitioner claimed not to have known of it and the original notice had not been furnished.

While portal service was legally sufficient, the absence of any response should have prompted the officer to explore another prescribed mode of service.

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

In these circumstances, and considering the petitioner’s submission that more than 40% of the disputed tax had been paid, the Court found it appropriate to set aside the assessment and remit the matter for fresh consideration.

The petitioner was directed to file her reply and supporting documents within three weeks of receiving the order; thereafter, the respondent was to give 14 days’ clear notice fixing a personal hearing and pass fresh orders on the merits and in accordance with law.

As the assessment order had been set aside, the Court directed the bank to immediately de-freeze the petitioner’s accounts upon production of the order.

The writ petition was disposed of without costs.