GST Notice Returned “Addressee Left”: Madras HC Stresses Dept’s Duty to Ensure Proper Delivery Through Alternative Means [Read Order]

In a recent ruling, the Madras High Court set aside a GST assessment order after finding that the notice was not served at the correct address of the taxpayer. The court emphasized that when delivery of a notice fails, the GST department must take alternative steps to ensure the taxpayer is informed and given an opportunity to respond.

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The petitioner, P. Godwin Prasanna, who runs Jay Joh Communication, filed a writ petition challenging the assessment order dated 13.04.2024 passed by the Assistant Commissioner of GST and Central Excise, Vellore. The petitioner argued that he did not receive the show cause notice because it was sent to his old address and was returned undelivered with the remark “Addressee Left.” He was unaware of the proceedings and could not file a reply or attend a personal hearing before the order was passed.

The petitioner’s counsel further argued that the order was issued without following the principles of natural justice and requested the court to grant another opportunity to present his case. The petitioner also offered to pay Rs. 50,000 as a condition for the matter to be reconsidered.

The GST department’s counsel fairly admitted that no personal hearing was granted to the petitioner before the order was passed. They did not oppose the request to remand the matter, subject to the payment proposed by the petitioner.

A single bench led by Justice Krishnan Ramasamy held that the assessment order was passed in violation of natural justice. The court emphasized that once a notice is returned undelivered, the department is expected to take further steps to ensure that the taxpayer is properly informed. Since this was not done, the petitioner was denied a fair opportunity to be heard.

The court quashed the assessment order and directed the petitioner to pay Rs. 50,000 within four weeks. It further directed the petitioner to submit his reply and documents within three weeks after making the payment. The GST officer was instructed to give a 14-day notice for a personal hearing and then pass a fresh order on merits.

The court also ordered that the attachment on the petitioner’s bank account be lifted once proof of payment is submitted. The writ petition was allowed, and all related applications were closed.

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