The Madras High Court addressed a case involving P.vl. M. Muthukumar Store and the Commissioner of Commercial Taxes, where an assessment order was challenged for being issued without a personal hearing. The petitioner argued that the tax liability was confirmed by the Deputy State Tax Officer on February 12, 2025, without granting a personal hearing, despite show cause notices being uploaded on the GST portal. The petitioner claimed a lack of awareness and effective service and expressed willingness to deposit 25% of the disputed tax to contest the matter on its merits.
The court examined whether an assessment order issued without a personal hearing, despite notices being served via the GST portal, was legally valid. It concluded that while uploading notices on the portal is considered valid service, the authority must use alternative methods under Section 169 when there is no response from the taxpayer. The court emphasized that fulfilling procedural requirements without ensuring effective service undermines natural justice principles and results in unnecessary litigation.
Read More: GST – Allahabad High Court: Mere uploading of adjudication orders on GST portal, without proof of notice or alert, does not amount to valid communication [Order attached]
Due to the absence of a personal hearing, the court set aside the assessment order, conditional upon the petitioner paying 25% of the disputed tax. The case was remanded for reconsideration, with instructions to provide a personal hearing and issue a reasoned order in line with legal standards.
Order Date: 18 December 2025
Parties: P.vl. M. Muthukumar Store v. Commissioner of Commercial Taxes & Another
Facts:
- The petitioner challenged an assessment order dated 12.02.2025 passed by the Deputy State Tax Officer confirming tax liability without granting a personal hearing.
- Though show cause notices were uploaded on the GST portal, the petitioner claimed lack of awareness and absence of effective service.
- The petitioner expressed willingness to deposit 25% of the disputed tax amount and sought an opportunity to contest the matter on merits.
Issue:
- Whether an assessment order passed without granting personal hearing, despite portal-based service of notices, is sustainable in law?
Order:
- The High Court held that while uploading notices on the GST portal constitutes valid service, the assessing authority must explore alternative modes under Section 169 when there is no response from the taxpayer.
- It observed that merely completing procedural formalities without ensuring effective service defeats the principles of natural justice and leads to avoidable litigation.
- Noting the admitted absence of personal hearing, the Court set aside the impugned assessment order subject to payment of 25% of the disputed tax by the petitioner.
- The matter was remanded for fresh consideration with directions to grant a clear personal hearing and pass a reasoned order in accordance with law.
