Ex parte GST assessment quashed as notices uploaded under “Additional Notices” instead of “Notices and Orders” and no personal hearing was granted

Case Details

Case Title: M/s Durga Paper Plate Industries v. Union of India & Ors.
Court: Patna High Court
Petition No.: CWJC No. 7911 of 2025
Judgment Date: 14 July 2025
Relevant Sections: Section 73(9), Section 75(4), Section 169 of the BGST Act, 2017
Category: Assessment – Natural Justice – Validity of Service of Notice

Facts (Paras 3–5)

The petitioner, a proprietorship firm engaged in the manufacture and trading of paper plates and cups, duly filed returns and deposited admitted taxes for FY 2019-20. Without prior communication, its bank account was attached for recovery of ₹7,21,819 (tax, interest, penalty) pursuant to an ex parte assessment order dated 28.08.2024 under Section 73(9) BGST Act. The petitioner discovered that the assessment order was uploaded only under the heading “Additional Notices and Orders” on the GST portal, without any valid service of show cause notice or opportunity of hearing.

Questions for Determination

1. Whether uploading of notices under “Additional Notices and Orders” instead of “Notices and Orders” satisfies the requirement of valid service under Section 169 of the BGST Act?

2. Whether absence of a fixed date for personal hearing in the SCN violates Section 75(4) of the BGST Act and the principles of natural justice?

3. Whether the writ petition is maintainable despite availability of an appellate remedy?

Observations (Paras 19–23)

• The Court noted that notices and orders were admittedly uploaded only under “Additional Notices and Orders,” not under the mandatory “Notices and Orders” tab, which vitiated service under Section 169.

• Relying on its earlier decision in M/s Lord Vishnu Construction Pvt. Ltd. (03.03.2025) and decisions of Delhi and Allahabad High Courts (Anhad Impex and Ola Fleet Technologies), the Court reiterated that mere uploading on the portal is insufficient unless proper service is ensured.

• Section 75(4) CGST mandates a personal hearing where adverse action is contemplated. In the instant case, the SCN (Annexure P/3) fixed only a date for reply but left the columns for personal hearing as “NA,” proving no hearing opportunity was granted.

• Thus, the assessment order violated statutory safeguards and principles of natural justice.

Judgment (Paras 24–26)

The Patna High Court set aside the ex parte assessment order dated 28.08.2024 and the consequential attachment proceedings. The petitioner was granted liberty to file its response within two weeks, with a direction to the Assessing Officer to provide a personal hearing if adverse action is contemplated and thereafter pass a reasoned order. The entire exercise is to be completed within three months.

Table of Cases Referred

Between Fine Lines

For businesses, this judgment underscores that GST authorities cannot rely solely on technical uploads under incorrect headings on the portal. Notices must be properly served, and taxpayers must be given an actual opportunity of personal hearing before any adverse order. Any lapse in service or hearing renders the assessment invalid.

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