Assessment Order Set Aside for Failure to Effectively Serve Notice

Case Title: Tvl. Jai Infotech v. Deputy State Tax Officer-2
Court: High Court of Judicature at Madras
Petition No.: WP No. 19673 of 2025
Category of Dispute: Natural Justice / Opportunity of Hearing
Date of Judgement: 04 June 2025
Relevant Section: Section 169 of CGST Act, 2017

🧾 Facts of the Case [¶1–4]

• The petitioner, Tvl. Jai Infotech, challenged the assessment order dated 25.04.2024 for FY 2018-19 passed by the Deputy State Tax Officer, Tiruppur.

• The show cause notice (Form DRC-01A dated 15.12.2023) and final notice (Form DRC-01 dated 29.01.2024) were uploaded only on the GST portal.

• The petitioner did not respond or appear for the personal hearing, allegedly because he was unaware of the uploaded notices and was not served by physical means.

• The petitioner sought to quash the order on grounds of improper service and expressed readiness to pay 25% of disputed tax to seek a fresh opportunity.

❓Question(s) in Consideration [¶4–7]

• Whether service of show cause notice by mere upload on GST portal amounts to valid service under Section 169 of CGST Act?

• Whether the assessment order passed ex parte without further efforts to serve notice violates principles of natural justice?

👩‍⚖️ Observation of Court [¶6–8]

• The Court acknowledged that while uploading on the GST portal is a valid mode under Section 169, it cannot be the sole method when no acknowledgment is received.

• The respondent failed to explore alternative prescribed methods such as Registered Post (RPAD), even when there was no reply from the petitioner.

• The Court observed that such “empty formalities” lead to unnecessary litigation and are contrary to the intent of the GST framework which emphasizes fair adjudication.

🧑‍⚖️ Judgement of the Court [¶8–9]

• The impugned order dated 25.04.2024 was set aside.

• The matter was remanded to the respondent authority for fresh consideration.

• The petitioner was directed to deposit 25% of the disputed tax within two weeks.

• After deposit, the petitioner must file a detailed reply with supporting documents.

• The respondent was ordered to issue a 14-day personal hearing notice and adjudicate afresh in accordance with law.

🧵 Between Fine Lines

• Uploading notice on GST portal is legally permissible but not sufficient when no response is received.

• Tax officers must proactively use other modes under Section 169 for effective service.

• Courts uphold natural justice over procedural formality.

• Ex parte orders without diligent service attempts are liable to be quashed.

• Taxpayers may seek remedy by committing partial tax payment and requesting rehearing.

📚 Summary of Referred Cases