Assessment Order Quashed for Improper Service of SCN on GST Portal

Case Details:

• Case Title: Tvl. JRS Documents Service vs. Deputy Commercial Tax Officer

• Court: Madras High Court

• Petition No.: W.P. No. 16933 of 2025

• Date of Judgement: 08.05.2025

• Category of Dispute: Natural Justice / Assessment Order

• Relevant Section(s): Section 73 and Section 169 of the CGST Act, 2017

• Judge: Hon’ble Mrs. Justice N. Mala

🧾 Facts of the Case (Relevant: Para 2, 5, 7)

1. The petitioner, Tvl. JRS Documents Service, engaged in document scanning, was issued a show cause notice (SCN) under Section 73 of CGST Act for AY 2019-2020, alleging incorrect return filing.

2. The petitioner claimed non-receipt of SCN and stated that the impugned assessment order dated 14.08.2024 for ₹56,58,014 was passed solely on the basis of uploading the SCN on the GST portal.

3. The department did not adopt any alternate mode of service as provided under Section 169, leading to the petitioner being deprived of a chance to respond.

❓Questions in Consideration (Relevant: Para 2, 7)

1. Whether mere uploading of a show cause notice on the GST portal amounts to valid service under Section 169 of the CGST Act?

2. Whether the assessment order passed without giving an opportunity of hearing is sustainable in law?

👩‍⚖️ Observations of the Court (Relevant: Para 7)

1. The Court observed that although uploading on the GST portal is one form of service, repeated unacknowledged notices should have prompted the officer to adopt alternate modes like RPAD as per Section 169.

2. Mechanical uploading of notices without ensuring actual service leads to procedural injustice and unnecessary litigation.

3. The assessment order was passed without granting the petitioner any opportunity of personal hearing, violating principles of natural justice.

⚖️ Judgement of the Court (Relevant: Para 8, 9)

1. The assessment order dated 14.08.2024 was quashed.

2. The case was remanded to the assessing authority for fresh adjudication.

3. The petitioner shall deposit 25% of the disputed tax within two weeks.

4. Upon such deposit, the petitioner may submit a reply and supporting documents.

5. The department must grant a personal hearing with a clear 14-day notice before passing any fresh order.

📌 Between Fine Lines

• Uploading a notice on the GST portal is not enough if the taxpayer does not respond.

• Departmental officers must adopt alternative methods of service under Section 169.

• Assessment orders passed without personal hearing are invalid.

• The court allows rectification by permitting fresh proceedings after partial tax deposit.

• Procedural fairness is paramount in tax adjudication under GST.

📚 Summary of Referred Cases

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