Case Title: Tvl. Sri Murugan Agro Agencies vs The Deputy State Tax Officer, Sathyamangalam Assessment Circle, Erode
Court: High Court of Judicature at Madras
Petition No.: W.P. No. 10866 of 2025 and W.M.P. Nos. 12249 & 12252 of 2025
Date of Judgement: 02.04.2025
Relevant Section: Section 73 of the CGST/TNGST Act, 2017
Category: Assessment – Violation of natural justice
Facts (Para 2–4):
The petitioner, Tvl. Sri Murugan Agro Agencies, challenged the assessment order dated 26.04.2023 passed under Section 73 of the CGST/TNGST Act for FY 2021–22. The petitioner contended that all show-cause notices and communications were uploaded in the GST portal under the column “View Additional Notices and Orders” instead of the standard “View Notices and Orders” section. As a result, neither the petitioner nor their previous Chartered Accountant was aware of such notices. Upon later verification by a new accountant, it was discovered that several orders had been issued. An appeal filed belatedly due to these circumstances was rejected by the Deputy Commissioner (CT) for being time-barred, leading to the present writ petition.
Questions before the Court:
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Whether the assessment order passed ex parte without proper notice constitutes a violation of principles of natural justice.
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Whether uploading notices under an incorrect portal section satisfies the requirement of due service under the GST Act.
Observations (Para 6–6.1):
The Court observed that the assessment order was passed ex parte since the petitioner was not heard. Notices were not visible in the usual “View Notices and Orders” column but were uploaded under a different tab. Such a technical misplacement on the GST portal resulted in a denial of opportunity to the taxpayer. The Court held that an order passed in violation of natural justice cannot stand. The Judge noted that although the petitioner had already deposited 10% of the disputed tax and voluntarily agreed to deposit an additional 15%, such readiness reflected bona fides and justified remand.
Judgement (Para 6.1–7):
The Hon’ble Court allowed the writ petition and set aside the impugned assessment order dated 26.04.2023 and corresponding DRC-07 summary. The matter was remanded to the assessing officer for fresh consideration with the following directions:
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The petitioner shall deposit 15% of the disputed tax within two weeks.
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Thereafter, file a detailed reply with supporting documents within two weeks.
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The respondent shall provide a clear 14 days’ notice for a personal hearing and pass a reasoned order in accordance with law.
No costs were awarded.
Summary of Referred Cases:
| Case Name | Court | Key Verdict / Principle |
|---|---|---|
| Sri Murugan Agro Agencies v. Deputy State Tax Officer | Madras High Court (2025) | Assessment order quashed as notices were uploaded under the wrong column, violating principles of natural justice. |
Between Fine Lines (Trade Impact):
This ruling underscores that GST authorities must ensure proper service of notices through the correct section of the GST portal. Uploading documents in incorrect tabs denies the taxpayer a fair chance to respond and renders the order void for violation of natural justice. For businesses, this judgment reinforces the importance of regular GST portal monitoring and validates that technical irregularities in notice service can form legitimate grounds to challenge adverse orders.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
