Uploading SCN on GST Portal Not Always Sufficient where Registration Stands Cancelled, Notice Must be Served by Registered Post: Madras HC [Read Order]
Since the petitioner no longer had access to the portal, he remained unaware of the proceedings and could not file objections. The assessment was thereafter completed ex parte, resulting in the impugned order.
Uploading SCN - GST Portal - Registration Stands - Notice Must - Registered Post - Madras HC - taxscan
Uploading SCN - GST Portal - Registration Stands - Notice Must - Registered Post - Madras HC - taxscan
The Madurai Bench of the Madras High Court has reiterated that mere uploading of a show cause notice (SCN) on the GST portal is not always sufficient, particularly in cases where the taxpayer’s registration has already been cancelled. In such instances, the authorities are bound to serve the notice through a registered post to ensure compliance with the principles of natural justice.
A writ petition was filed by K. Chandra, a government works contractor, challenged the assessment order dated 23 January 2025 passed under Section 73of the TNGST Act, 2017, demanding tax of ₹8.62 lakh along with interest and penalty.
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The petitioner’s GST registration had been cancelled in October 2020. However, the show cause notice initiating the assessment was uploaded only on the GST portal in November 2024.
Since the petitioner no longer had access to the portal, he remained unaware of the proceedings and could not file objections. The assessment was thereafter completed ex parte, resulting in the impugned order.
Justice G.R. Swaminathan, hearing the matter, observed that in such situations, the taxpayer cannot be expected to check the GST portal when their registration itself stands cancelled.
The court referred to the earlier decision in Tvl. Apollo Medicals v. State Tax Officer, 2025, the Court held that “uploading the show cause notice in the portal may not always be sufficient… In such circumstances, the assessing officer ought to have served the show cause notice through registered post.”
The Court set aside the assessment order which violated principles of natural justice. However, instead of quashing the proceedings entirely, it treated the impugned order as a show cause notice and directed the petitioner to file a reply within three weeks. The assessing officer was instructed to conduct a fresh enquiry and pass a speaking order within eight months.
The Court also noted that over 90% of the disputed tax had already been recovered from the petitioner. Hence, it ordered that the attachment of the petitioner’s bank account be lifted forthwith.
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