GST SCN served 2 days prior to Issuance Date: Madras HC orders Fresh Consideration [Read Order]
The court said that there is a clear violation of natural justice despite recovering 80% of the disputed tax.
![GST SCN served 2 days prior to Issuance Date: Madras HC orders Fresh Consideration [Read Order]](https://images.taxscan.in/h-upload/2026/02/16/2125559-gst-scn-issuance-date-madras-high-court-fresh-consideration-gst-scn-show-cause-notice-gst-taxscan.webp "GST SCN served 2 days prior to Issuance Date: Madras HC orders Fresh Consideration [Read Order]")
The Madurai Bench of the Madras High Court has set aside a GST ( Goods and Services Tax ) assessment order after finding that the notice was shown as received by the taxpayer two days before its official issuance date. In the matter of M/s. Sri Sakthimurugan Crusher, the petitioner-assessee challenged the assessment order dated 13.02.2025 passed under Section 73 of the TNGST Act...
The Madurai Bench of the Madras High Court has set aside a GST ( Goods and Services Tax ) assessment order after finding that the notice was shown as received by the taxpayer two days before its official issuance date.
In the matter of M/s. Sri Sakthimurugan Crusher, the petitioner-assessee challenged the assessment order dated 13.02.2025 passed under Section 73 of the TNGST Act for FY 2020-21.
The petitioner contended that all communications and notices were uploaded only on the GST common portal and were not brought to its knowledge. This resulted in failure to submit a reply within time, submitted by the assessee.
It was further argued that the impugned order had been passed without affording any opportunity of personal hearing.
The petitioner also informed the Court that about 80% of the disputed tax amount had already been recovered by the department.
However, the department submitted that a physical show cause notice in DRC-01 dated 25.11.2024 had been served on the petitioner and that the assessee failed to respond despite such service.
The court noted that from postal acknowledgment, found that the notice dated 25.11.2024 was recorded as having been received on 23.11.2024, i.e., two days prior to its issuance date. The assessment order itself also reflected this anomaly, said the court.
Thus, Justice Krishnan Ramasamy held that there was a defect in the issuance and service of the show cause notice, which explained why the petitioner may not have been aware of the proceedings.
It observed that the assessment order was passed without providing a hearing opportunity to the assessee despite recovering 80% of the disputed tax. There is a clear violation of principles of natural justice, said the court.
Accordingly, the High Court set aside the impugned assessment order and remanded the matter back to the State Tax Officer for fresh consideration.
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