GST Notices Must Be Effectively Served: Madras HC Says RPAD Required If No Response to Portal Upload [Read Order]

The Madras High Court ruled that GST ( Goods and Services Tax ) notices must be effectively served, and held that if there is no response to a notice uploaded on the GST portal, the authorities are required to serve the notice through Registered Post with Acknowledgement Due ( RPAD ).

The petitioner, Tvl. Sri Mathuru Eswarar Traders, a commission agent engaged in cotton ginning and a registered GST dealer, challenged the assessment order dated 30.12.2024, which confirmed the proposals in the show cause notice (SCN) and demanded tax of over ₹9.67 lakh including interest and penalty.

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The core grievance was that the SCN was merely uploaded on the GST portal and went unnoticed, thereby denying the petitioner an opportunity to respond.

Also read: GST SCN Issued Based onUnshared Verification Report: Madras HC Declines to Quash SCN, Orders Dept toProvide Report [Read Order]

Justice N. Mala, presiding over the matter, noted that the show cause notice was not physically served and no personal hearing was granted before confirming the demands.

The Court observed that merely uploading a notice on the GST portal, without ensuring its receipt, does not constitute valid service under Section 169 of the CGST Act. It stated that when there is no response to portal notices, tax officers must explore alternate methods of service such as registered post, to ensure effective communication.

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The mechanical act of uploading notices without follow-up was deemed a violation of the principles of natural justice and could lead to unnecessary litigation. The court observed that “Mere uploading notice repeatedly without ensuring their receipt by the petitioner cannot be considered as effective service. Such mechanical compliance does not serve any useful purpose and the same will only lead to multiplicity of litigations, wasting not only the time of the Officer concerned, but also the precious time of the Appellate Authority / Tribunal and this Court as well. Thus, when there was no response from the tax payer to the notice uploaded in the portal, the Officer should have sent the notice through RPAD, which would have serve the purpose.”

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The court, while setting aside the assessment order, remanded the matter to the assessing authority for fresh consideration. It directed the petitioner to deposit 25% of the disputed tax within two weeks and subsequently file a reply with supporting documents.

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The authority was instructed to grant a 14-day notice and provide a personal hearing before passing a fresh order. Additionally, the Court directed the authorities to de-freeze the petitioner's bank account upon proof of partial tax deposit.

Also read: GST Registration Suspension without Invoking Civil or Criminal Action forContravention of Provisions Directly hits Fundamental Right: Madras HC [ReadOrder]

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