Uploading GST Notices on Portal Alone Is Not Sufficient: Madras
High Court
Brief
Summary:
In the case M/s. Sri
Murugan Agro Service vs. State Tax Officer (W.P. No. 23587 of 2025), the
Madras High Court set aside an ex-parte GST assessment order on the ground that
the petitioner was not given an opportunity for a personal hearing.
Although the show cause notice was uploaded on the GST portal, the Court held
that mere uploading does not ensure effective service. The Court
emphasized the need for alternative communication methods under Section 169
of the GST Act, like RPAD (Registered Post Acknowledgment Due), especially
when there is no taxpayer response. The case was remanded back for fresh
adjudication after directing the petitioner to deposit 25% of the disputed tax.
Case Title
and Details:
- Case Name:
M/s. Sri Murugan Agro Service vs. State Tax Officer
- Writ Petition No.:
23587 of 2025 & W.M.P.Nos.26505 & 26508 of 2025
- Date of Order:
01.07.2025
- Court:
High Court of Judicature at Madras
Background
and Facts:
The petitioner, M/s.
Sri Murugan Agro Service, represented by its proprietor Mr. Govindasamy
Murugan, challenged an assessment order dated 01.02.2025, issued
under Section 73 of the CGST/TNGST Act for the financial year 2020–2021.
Key facts:
- The department uploaded the show
cause notice and communications on the GST portal.
- The petitioner claimed no
knowledge of these uploads and hence failed to respond or appear.
- No personal hearing was
provided before the order was passed.
- The petitioner approached the Court
seeking quashing of the order and offered to deposit 25% of the
disputed tax amount.
Submissions
Before the Court:
Petitioner’s Submissions:
- Notices were only uploaded on the
portal under “Additional Notices and Orders.”
- The petitioner did not receive any
physical or alternate mode of service.
- The order was passed without
affording a personal hearing, violating principles of natural
justice.
- The petitioner is willing to deposit 25%
of the disputed amount for fresh adjudication.
Respondent’s Submissions:
- The department argued that uploading
notices on the portal is a valid mode of service.
- However, fairly admitted that no
personal hearing was provided.
- Requested that the matter be remanded
back, subject to deposit of 25% of tax.
Findings of
the Hon’ble High Court:
- Uploading notices on the GST portal
is a formally valid mode of service.
- However, when there is no response
from the taxpayer, the authority should use alternate modes of
service as per Section 169(1) of the GST Act.
- Preferably, notices should be sent by
RPAD, which ensures that the notice reaches the taxpayer
effectively.
- Passing an ex-parte order by
fulfilling only formalities defeats the purpose of fair adjudication
and leads to avoidable litigation.
- There was a clear denial of
opportunity of hearing in this case.
Final
Judgment & Directions:
The High Court issued the
following directions:
1. The
impugned order dated 01.02.2025 was set aside.
2. The
case was remanded to the State Tax Officer for fresh consideration.
3. The
petitioner must deposit 25% of the disputed tax within 4 weeks of
receiving the Court order.
4. Within
3 weeks of depositing the amount, the petitioner must submit a reply/objection
along with relevant documents.
5. The
respondent shall then issue a 14-day notice for a personal hearing and
thereafter pass a reasoned order on merits.
The writ petition was disposed
of with no costs.
Conclusion:
The Murugan Agro
Service judgment reinforces that procedural formalities must not
override fairness. It reminds GST authorities to ensure that taxpayers
receive a genuine opportunity to be heard. On the other hand, it
encourages taxpayers to act swiftly, but also provides a second chance
when there is sincere intent to comply.
Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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