Madras High Court
Tax LawAdministrative and Public Law

Tax officers must explore alternative statutory service when portal notices receive no response.

Sri Saarathi Home Needs vs The Deputy State Tax Officer 1

Madras High CourtJUDGMENT: October 12, 20262 MIN READSOURCE JUDGMENT
Tax officers must explore alternative statutory service when portal notices receive no response.. Sri Saarathi Home Needs vs The Deputy State Tax Officer  1. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner challenged an assessment order dated 24 December 2025 for FY 2021–22.

Source reference: para. 3-5; p. 2-3

The respondent had uploaded notices to the GST portal, but the petitioner said it was unaware of them and had not received the show-cause notice.

Source reference: para. 3-5; p. 2-3

The petitioner consequently did not reply, and the respondent passed the impugned order without providing a personal hearing.

Source reference: para. 3-5; p. 2-3

The petitioner offered to pay 25% of the disputed tax to obtain a fresh consideration; the respondent did not oppose remand subject to that payment.

Source reference: para. 3-5; p. 2-3
02

Issues

Whether the assessment order should be set aside where notices were uploaded to the GST portal but the petitioner received no personal hearing and did not respond

Source reference: para. 7-9; p. 3-5

Whether remand for fresh consideration should be made conditional on payment of 25% of the disputed tax

Source reference: para. 10; p. 5
03

Law Applied

Section 169(1) of the GST Act recognizes prescribed modes of service, including service through the GST portal and other modes such as registered post acknowledgment due (RPAD).

Source reference: para. 8-9; p. 4-5

The Court held that although portal service is a valid mode, where a taxpayer does not respond to repeated portal notices, the officer should consider using another prescribed mode to achieve effective service.

Source reference: para. 8-9; p. 4-5

An ex parte order should not be founded merely on formal compliance where reasonable steps could be taken to provide an effective opportunity to respond.

Source reference: para. 8-9; p. 4-5

The Court also applied the requirement of a personal hearing before fresh adjudication.

Source reference: para. 10; p. 5

No precedent was cited.

Source reference: para. 8-9; p. 4-5; para. 10; p. 5
04

Reasoning

The Court accepted that uploading notices to the GST portal constitutes valid service, but distinguished formal validity from effective notice in the circumstances.

Source reference: para. 7-10; p. 3-5

Given the petitioner’s non-response, the officer should have considered other modes under Section 169(1), preferably RPAD, rather than proceeding without an effective opportunity to participate.

Source reference: para. 7-10; p. 3-5

The absence of a personal hearing further supported setting aside the order.

Source reference: para. 7-10; p. 3-5

In view of the petitioner’s offer and the respondent’s position, the Court ordered remand subject to payment of 25% of the disputed tax.

Source reference: para. 7-10; p. 3-5
05

Holding

The writ petition was disposed of and the assessment order was set aside, with the setting aside to take effect upon the petitioner’s payment of 25% of the disputed tax within four weeks of receiving the order.

Any amount already recovered or deposited may be adjusted against that payment.

Source reference: para. 10-11; p. 5-6

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

Source reference: para. 10-11; p. 5-6

No costs were ordered.

Source reference: para. 10-11; p. 5-6
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Central Goods and Services Tax Act, 20171

Madras High Court

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Sri Saarathi Home NeedsvsThe Deputy State Tax Officer 1

Madras High Court · October 12, 2026

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