The Madras High Court addressed a case involving Tvl. Sri Samy Agencies and the Commissioner of Commercial Taxes, where the petitioner contested an ex parte GST assessment order dated October 25, 2024, for the 2017–18 assessment year. The petitioner claimed they were unaware of the show cause notice and communications as these were only uploaded on the GST portal, leading to a lack of response and subsequent assessment without a personal hearing.
The core issue was whether an assessment order based solely on portal-uploaded notices, without a personal hearing, adhered to the GST Act's requirements. The High Court found that the assessment violated principles of natural justice. While acknowledging that notice service through the GST portal is valid under the Act, the Court emphasized that if such notices do not elicit a response, the assessing authority must use other service methods outlined in Section 169 of the GST Act to ensure effective communication.
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The Court concluded that simply uploading notices and proceeding with ex parte orders is insufficient and leads to unnecessary litigation. Consequently, it set aside the impugned order and remanded the case for fresh adjudication, contingent on the petitioner depositing 25% of the disputed tax within four weeks. The petitioner was instructed to submit a detailed reply within three weeks following the deposit. This decision underscores the importance of adhering to procedural fairness and ensuring taxpayers are adequately informed.
Order Date: 02.01.2026
Parties: Tvl. Sri Samy Agencies v. Commissioner of Commercial Taxes & Anr.
Facts -
- The petitioner challenged the assessment order dated 25.10.2024 passed for the assessment year 2017–18. The show cause notice and subsequent communications were uploaded only on the GST portal.
- According to the petitioner, they were unaware of such notices and consequently failed to submit a reply. The assessment order was passed ex parte without granting any opportunity of personal hearing.
- Aggrieved, the petitioner approached the High Court and expressed willingness to deposit 25% of the disputed tax amount for reconsideration of the matter.
Issue -
- Whether an assessment order passed solely on the basis of portal-uploaded notices, without granting personal hearing, is sustainable under the GST Act?
Order -
- The Madras High Court set aside the impugned assessment order dated 25.10.2024 on the ground that it was passed in violation of principles of natural justice.
- While acknowledging that service of notice through the GST portal is a valid mode under the Act, the Court observed that where repeated notices uploaded on the portal elicit no response from the taxpayer, the assessing authority is duty-bound to explore other modes of service prescribed under Section 169 of the GST Act to ensure effective communication.
- The Court held that merely uploading notices and passing ex parte orders amounts to empty formalism and leads to avoidable litigation.
- Accordingly, the Court remanded the matter to the assessing authority for fresh consideration, subject to the condition that the petitioner deposits 25% of the disputed tax amount within four weeks. The petitioner was directed to file a detailed reply within three weeks thereafter.
