Assessment Order Set Aside for Improper Service of Notice through GST Portal Alone

Case Name: Nizaar Bags v. Deputy Commercial Tax Officer
Court: High Court of Judicature at Madras
Petition No.: WP No. 19789 of 2025
Date of Judgement: 04-06-2025
Category of Dispute: Opportunity of Personal Hearing, Valid Service of Notice
Relevant Section(s): Section 169 of CGST Act, 2017
Coram: Hon’ble Mr. Justice Krishnan Ramasamy

Facts of the Case (¶3–¶4)

• The petitioner, Nizaar Bags, received an intimation in Form DRC-01A dated 19.03.2024, followed by a show cause notice in Form DRC-01 dated 23.05.2024 via the GST portal. Despite three reminders, the petitioner did not respond or attend any hearing.

• The petitioner claimed non-receipt of notices via physical or registered post and thus was unaware of proceedings, resulting in an ex parte assessment order dated 29.08.2024.

Questions in Consideration (¶4, ¶7)

• Whether service of notice solely via the GST portal amounts to sufficient service under Section 169 of CGST Act?

• Whether the impugned assessment order passed without giving an effective opportunity of hearing is valid?

Observation of the Court (¶6–¶8)

• The Court acknowledged that while uploading notices on the GST portal is legally valid, it may not always constitute effective service, especially when no response is received.

• It criticized the respondent officer for failing to utilize alternative modes of communication (e.g., Registered Post Acknowledgement Due) under Section 169(1) when the taxpayer did not respond.

• The Court emphasized that ex parte proceedings based on mere procedural formality defeat the objectives of natural justice and the GST Act.

Judgement of the Court (¶8–¶9)

• The impugned order dated 29.08.2024 was set aside.

• The case was remanded back with directions:

  • Petitioner to deposit 25% of the disputed tax within two weeks.

  • Petitioner to file reply with supporting documents within two more weeks.

  • Respondent to issue a 14-day notice for personal hearing and pass a fresh order in accordance with law.

Between Fine Lines (Plain-Language Summary)

1. Merely uploading a notice on the GST portal isn’t enough if the taxpayer doesn’t respond.

2. Officers must use other valid modes of service like RPAD as per Section 169.

3. The Court quashed the ex parte assessment order for lack of effective notice and hearing.

4. It allowed the taxpayer a fresh opportunity to respond after paying partial tax.

5. This judgment strengthens procedural fairness in GST adjudications.

Summary of Referred Cases

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