Order Date – 08 May 2025

Parties: Tvl. Sri Mathuru Eswarar Traders Vs Deputy State Tax Officer-I, Thiruppur

Facts –

• The Petitioner, Tvl. Sri Mathuru Eswarar Traders, a commission agent engaged in cotton ginning, challenged an assessment order dated 30.12.2024 confirming a demand including tax, interest, and penalty on the ground of ITC availed from a non-existent dealer. 
• The show-cause notice was uploaded on the GST portal but not communicated through any other means. The petitioner claimed that they were unaware of it and hence could not file a reply.

Issue –

• Whether uploading a show-cause notice on the GST portal satisfies the requirement of service under Section 169 of the GST Act?

Order –

• The Single Bench of Hon’ble High Court observed that the impugned assessment order passed without affording any opportunity of personal hearing to the petitioner, confirming the proposals contained in the show cause notices is illegal and unsustainable.
• Mere uploading notice repeatedly without ensuring their receipt by the petitioner cannot be considered as effective service. Such mechanical compliance does not serve any useful purpose and the same will only lead to multiplicity of litigations, wasting not only the time of the Officer concerned, but also the precious time of the Appellate Authority / Tribunal and this Court as well. Thus, when there was no response from the tax payer to the notice uploaded in the portal, the Officer should have sent the notice through RPAD, which would have serve the purpose.
• Hence, inclined to set-aside the impugned order.