No Personal Hearing: Madras HC Sets Aside Three GST Orders, Giving Trader Fresh Hearing After 25% Disputed-Tax Deposit

The petitioner challenged three GST assessment orders in Form GST DRC-07 for tax periods 2024–2025, 2020–2021 and 2022–2023.

The notices had been uploaded to the GST common portal, but the petitioner said it had not seen them and therefore did not respond.

The petitioner also contended that no personal hearing was provided before the orders were passed.

It offered to pay 25% of the disputed tax in each petition in return for an opportunity to present its case.

The respondent acknowledged that no personal hearing had been given and agreed to remand subject to that payment.

Section 169(1) of the GST Act prescribes valid modes for service of notices and orders, including portal-based service and other prescribed modes.

While portal upload is sufficient service, where a taxpayer does not respond to notices issued through one mode, the officer should consider other available modes under Section 169(1), preferably registered post with acknowledgment due (RPAD), to promote effective service.

The judgment also applies the principle that an affected taxpayer should have an opportunity to be heard before an adverse order is made.

The Court accepted that uploading the show-cause notices to the portal constituted a valid mode of service, but considered the petitioner’s lack of response and the absence of a personal hearing.

It held that, in those circumstances, the officer should have explored other modes of service available under Section 169(1), rather than proceed to ex parte orders after portal upload alone.

The Court therefore found insufficient efforts to ensure effective service and accepted remand on the condition that the petitioner pay 25% of the disputed tax in each matter.

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

On receipt of the reply, the respondent must give 14 days’ clear notice fixing a personal hearing, hear the petitioner and pass fresh orders on the merits and in accordance with law.

The writ petitions were disposed of without costs, and the connected miscellaneous petitions were closed.