Portal Notices Went Unanswered: Madras HC Sets Aside GST Assessment And Remands Case, Citing No Hearing And No Other Service Efforts

In brief

The question

1. Whether the assessment order should be set aside where the notice was uploaded to the GST portal, but no personal hearing was provided and the respondent did not pursue other modes of service after receiving no response.

The court held

The Court quashed the assessment order dated 16 April 2024 only insofar as it concerned the ITC issue under Section 16(4) of the CGST Act.

It also directed

It set aside the order on the remaining issues and remanded them to the respondent for fresh consideration.

The petitioner was directed to file its reply and supporting documents within three weeks of receiving the order; the respondent was then to give 14 days’ clear 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.

01Facts

The petitioner challenged an assessment order dated 16 April 2024.

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The show-cause notice and other communications had been uploaded to the GST portal; the petitioner said it had not seen them and therefore had not replied.

pp. 2–3

The respondent acknowledged that no personal hearing had been provided.

pp. 2–3

The petitioner also raised an issue concerning input tax credit (ITC) allegedly barred by limitation under Section 16(4) of the CGST Act, 2017, and stated that it had paid the disputed tax.

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The petitioner sought quashing of the assessment order and a fresh assessment after a personal hearing.

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02Issues

i.1. Whether the assessment order should be set aside where the notice was uploaded to the GST portal, but no personal hearing was provided and the respondent did not pursue other modes of service after receiving no response.

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ii.2. Whether the assessment order should be quashed to the extent it concerned the petitioner’s ITC claim said to be barred under Section 16(4) of the CGST Act, in light of the Court’s earlier common order dated 17 October 2024.

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03Law Applied

Section 169(1) of the GST Act provides for valid modes of service, including service by uploading a communication to the common portal; however, where a taxpayer does not respond to portal communications, the officer should explore other available modes of service, preferably registered post with acknowledgment due (RPAD), to make service effective.

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The Court also relied on its common order dated 17 October 2024 in W.P. Nos. 25081 of 2023 and connected matters, which it treated as covering the issue concerning ITC barred by limitation under Section 16(4) of the CGST Act.

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The Court further required a personal hearing before fresh orders on the remanded issues.

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Provisions in the judgment · 2 · Linked ones open on LawLens

Central Goods and Services Tax Act, 2017 Section 16 Section 169

04Reasoning

Although portal upload constitutes a valid mode of service, the petitioner’s lack of response called for the respondent to consider other modes permitted by Section 169(1), rather than proceed on the basis of portal service alone.

pp. 4–5

The absence of a personal hearing, acknowledged by the respondent, supported setting aside the assessment for fresh consideration on the other issues.

pp. 4–5

As to the Section 16(4) ITC issue, the Court relied on its earlier common order and quashed the assessment only to that extent.

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