Case Title: Tvl. Sri Kumaran Tiles Bazaar v. Deputy State Tax Officer – I, Medavakkam Assessment Circle
Court: Madras High Court
Petition No.: W.P. Nos. 19206 & 19210 of 2025
Date of Judgment: 04 June 2025
Relevant Section: Section 73 of the CGST/TNGST Act, 2017
Category of Dispute: Assessment Order – Natural Justice Violation
Facts (Para 2–4):
The petitioner, Tvl. Sri Kumaran Tiles Bazaar, challenged two ex-parte GST assessment orders dated 15.03.2024 and 24.08.2024 for FY 2018–19 and 2019–20 respectively, passed under Section 73 of the CGST/TNGST Act. Notices in Forms DRC-01A and DRC-01 were uploaded on the GST portal but were not served personally or by RPAD. The petitioner claimed it was unaware of these proceedings and therefore could not submit replies or attend personal hearings. It was also submitted that the entire disputed tax had already been paid, and an opportunity should be given to file objections.
Questions Before the Court:
Whether the ex-parte assessment orders passed solely on portal upload without personal service violate the principles of natural justice under the CGST Act, warranting interference and remand?
Observations (Para 5–7):
The Court noted that the petitioner’s counsel admitted payment of the entire disputed tax. The respondent’s counsel did not object to remand, subject to verification of such payment. The Court emphasized that where the assessee has already discharged the liability and yet assessment orders were passed without ensuring actual service of notices, principles of natural justice are violated. The Court also observed that proceedings uploaded on the portal without effective service could deprive the taxpayer of the chance to defend its case.
Judgment (Para 8–9):
The High Court set aside the impugned assessment orders dated 15.03.2024 and 24.08.2024, remanding the matter for fresh consideration. The petitioner was directed to file replies with supporting documents within two weeks, and the respondent to pass fresh orders after granting personal hearing. The Court further directed verification of the payment of disputed tax before proceeding. The petitions were disposed of with no costs, and miscellaneous petitions were closed.
Summary of Cases Referred
| Case Name | Court | Issue | Verdict / Ratio |
|---|---|---|---|
| Sri Kumaran Tiles Bazaar v. Deputy State Tax Officer | Madras High Court (2025) | Ex-parte assessment and lack of personal service of notice | Orders quashed and remanded for fresh adjudication with personal hearing |
Between Fine Lines (Trade Takeaway):
This decision reaffirms that mere uploading of GST notices on the portal is not sufficient service under law. Taxpayers must be given a real opportunity to respond through effective communication. Where tax dues are already paid, the department must verify and allow representation before finalizing the assessment. The judgment emphasizes adherence to natural justice and fair procedure under Section 73 proceedings.
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.”
