GST Officer Must Explore Other Modes of Service If No Response on Portal Notices: Madras HC Sets Aside Ex Parte Assessment Order [Read Order]

In a recent ruling, the Madurai Bench of the Madras High Court held that if a taxpayer does not respond to notices uploaded in the Goods and Services Tax(GST) portal, the officer should try other valid modes of service under Section 169 and cannot simply pass an ex parte assessment order without giving personal hearing.

Tvl. SPR Enterprises filed a writ petition challenging the assessment order and the summary order passed by the GST authorities. The petitioner stated that all notices, including the show cause notice, were uploaded only in the GST portal.

According to them, they were not aware of the notice and no physical copy was given. Because of this, they did not file reply in time and the assessment order was passed without giving any personal hearing.

The petitioner’s counsel argued that the order was passed by confirming the proposals in the show cause notice without hearing them, which is against principles of natural justice. The petitioner also said that they are ready to pay 25% of the disputed tax amount and requested one more opportunity.

The respondents argued that uploading notice in the GST portal is a valid service. The Government Pleader admitted that no personal hearing was given before passing the order and agreed that the matter can be sent back, subject to payment of 25% of the disputed tax.

Justice Krishnan Ramasamy observed that even though uploading notice in portal is a valid mode, when there is no response from the taxpayer, the officer should apply his mind and try other modes of service mentioned in Section 169(1) of the GST Act. The court observed that simply passing ex parte orders by doing empty formalities will only increase unnecessary litigation.

The court explained that officers should try other methods like sending notice by Registered Post with Acknowledgment Due to ensure proper service. In this case, proper opportunity was not given to the petitioner.

The court set aside the assessment order and the summary order. The matter was sent back to the second respondent for fresh consideration on condition that the petitioner pays 25% of the disputed tax within four weeks.

After payment, the petitioner must file reply within three weeks, and the officer must give 14 days clear notice for personal hearing and then pass fresh order on merits. The writ petition was disposed of with these directions.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates