Assessment Order Set Aside Due to Ineffective Service of Notice via GST Portal

Court: Madras High Court
Case Title: Tvl. Jai Infotech v. Deputy State Tax Officer-2, Tiruppur Bazaar (C)
Petition No.: WP No. 19673 of 2025
Date of Judgment: 04-06-2025
Category of Dispute: Assessment Proceedings – Principles of Natural Justice
Relevant Section: Section 169 of CGST Act, 2017
Bench: Justice Krishnan Ramasamy

Facts of the Case (Para 1–4)

The petitioner, a registered dealer, challenged the assessment order dated 25.04.2024 for FY 2018–19. A notice in Form DRC-01A (15.12.2023) and subsequently a show cause notice in Form DRC-01 (29.01.2024) were issued via the GST common portal. The petitioner, however, failed to file a reply or attend the personal hearing. The department proceeded to confirm the proposals ex parte. The petitioner contended that neither the notice nor the order was served through physical or registered post, and the portal-based service was ineffective.

Question(s) in Consideration (Para 4–7)

• Whether service of notices and order exclusively through the GST common portal suffices as valid service under Section 169 of CGST Act?

• Whether ex parte assessment without effective opportunity violates principles of natural justice?

Observations of the Court (Para 6–8)

• Although service via GST Portal is valid under Section 169(1), the court held that it must be “effective service” in spirit. Repeated non-response by the taxpayer required the officer to use alternative statutory modes (such as RPAD).

• Relying solely on uploading to the portal, without ensuring actual knowledge of the notice, undermines the intent of Section 169 and leads to avoidable litigation.

• The court emphasized that sending physical notice via registered post, when digital service fails, would better serve the law’s purpose.

Judgment of the Court (Para 8–9)

• The assessment order dated 25.04.2024 was quashed.

• The matter was remanded to the department for fresh consideration.

• The petitioner must deposit 25% of the disputed tax within two weeks.

• A fresh reply is to be submitted within two weeks thereafter.

• The department must provide a clear 14-day notice for personal hearing and decide afresh on merits.

Between Fine Lines

• Service of notice on the GST Portal is legally valid but must also be effective.

• Non-response from taxpayer should prompt use of alternative service methods like RPAD.

• Mere portal upload may not fulfill principles of natural justice.

• The court promotes a taxpayer-centric approach to ensure genuine participation.

• Ex parte orders passed in procedural haste can be quashed and remanded.

Summary of Referred Cases