No Reply To GST Portal Notices: Madras HC Sets Aside Ex Parte Assessment, Urges RPAD And Makes Relief Subject To 25% Disputed-Tax Deposit

The petitioner challenged an assessment order dated 20 February 2025 and the consequential rejection of its rectification application dated 8 October 2025 for FY 2020–21.

It said the notices had been uploaded under “View Additional Notices and Orders” on the GST portal, of which it was unaware, and that no personal hearing had been provided before the assessment was made.

The respondent acknowledged that no personal hearing had been afforded.

The petitioner offered to pay 25% of the disputed tax as a condition for remand.

The Court also noted that the show-cause notice had been uploaded on the GST portal and that the assessment confirmed its proposals.

Section 169 of the GST Act recognises prescribed modes of service, including service through the GST portal and other modes such as registered post.

The Court accepted that portal-uploaded notice constitutes sufficient service, but held that where the taxpayer does not respond, the officer should consider other available modes—preferably registered post with acknowledgment due (RPAD)—to make service effective.

The Court also applied the principles of natural justice in requiring a personal hearing before fresh orders are made.

Although portal service was sufficient in law, the petitioner’s non-response should have prompted the respondent to consider another mode of service under Section 169, rather than proceed without a personal hearing.

The respondent admitted that no hearing had been given, and the Court found that the assessment had been made without an effective opportunity for the petitioner to present its case.

In light of those circumstances and the petitioner’s offer to pay 25% of the disputed tax, the Court considered remand appropriate.

Since the impugned orders were set aside, the related bank attachment could not continue.

The petitioner must file its reply and supporting documents within three weeks of payment; the respondent must then give 14 days’ clear notice of a personal hearing and decide the matter on its merits and in accordance with law.

Any amount already recovered or deposited may be adjusted against the 25% payment.

The bank accounts are to be de-frozen upon production of the order, with the petitioner required first to comply with the payment direction before using the remaining balance for business operations.

The writ petition was disposed of without costs.