Order Date – 09 May 2025

Parties: Alagappan Palaniappan  Vs The Deputy State Tax Officer and The Branch Manager  Central Bank of India

Facts –

• The Petitioner,  Alagappan Palaniappan, was informed by his bank on March 2025 that his business account had been frozen by an order dated 29.04.2024 issued by the Deputy State Tax Officer.
• The freezing was based on a demand  relating to wrongful ITC claims for the financial year 2017–2018. The petitioner alleged that the impugned assessment order was passed without service of a show-cause notice, and no opportunity for personal hearing was granted.

Issue –

• Whether the assessment order passed without proper service of notice and without granting personal hearing is sustainable under GST law?

Order –

• The Hon’ble High Court observed that  the petitioner was not aware of the issuance of the show cause notice issued through the GST Portal and the original of the said show cause notice was not furnished to him. In such circumstances, the Court is of the view 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. 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 served the purpose.
• The impugned order dated 29.04.2024 is set aside. The matter is remanded to the assessing authority (first respondent) for fresh consideration.