Portal-Only GST Notices, No Personal Hearing: Madras HC Sets Aside Assessment Subject To 25% Disputed-Tax Deposit

In brief

The question

Whether the assessment order should be set aside and the matter remanded where notices were uploaded to the GST portal but the petitioner received no personal hearing.

The court held

The Court set aside the order dated 26 August 2024 and remanded the matter for fresh consideration, conditional on payment of 25% of the disputed tax within four weeks of receipt of the Court’s order; the setting aside takes effect upon payment.

It also directed

The petitioner must file her reply and supporting documents within three weeks after payment.

The respondent must then provide 14 clear days’ notice of a personal hearing and pass a fresh order on the merits and in accordance with law.

The writ petition was disposed of without costs.

01Facts

The petitioner challenged the assessment order dated 26 August 2024 for FY 2019–20, submitting that notices uploaded to the GST portal had not come to her attention and that she had not been given a personal hearing.

pp. 2–3

The respondents maintained that the notices had been uploaded to the portal, but acknowledged that no personal hearing had been provided; they consented to remand subject to payment of 25% of the disputed tax.

p. 3

The petitioner also expressed willingness to make that payment.

p. 3, 5

02Issues

i.Whether the assessment order should be set aside and the matter remanded where notices were uploaded to the GST portal but the petitioner received no personal hearing.

pp. 2–4

ii.Whether remand should be conditional on payment of 25% of the disputed tax.

p. 5

03Law Applied

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

p. 4

While portal-uploaded notice may constitute sufficient service, where a taxpayer does not respond, the issuing officer should consider other prescribed modes—preferably registered post with acknowledgment due (RPAD)—to ensure effective service.

p. 4

The order also applies the principles of natural justice by requiring a personal hearing before the matter is decided afresh.

p. 3, 5

Provisions in the judgment · 1

Goods and Services Tax Act Section 169

04Reasoning

The Court accepted that portal service was legally sufficient, but considered that the absence of any response should have prompted the officer to explore another service mode under Section 169(1), rather than proceed ex parte.

pp. 3–4

It also noted that no personal hearing had been afforded and that the respondent supported remand.

p. 3, 5

In light of these circumstances and the petitioner’s undertaking to pay 25% of the disputed tax, the Court set aside the assessment order subject to that payment.

p. 3, 5