The Madras High Court set aside an assessment order against Tvl. SVB Constructions due to improper service of notices, emphasizing the violation of natural justice principles. The petitioner, represented by proprietor Rajeshwaran, challenged the assessment order dated February 2, 2026, and the subsequent GST DRC-07 order issued by the Deputy State Tax Officer. The petitioner argued that notices in Forms GST ASMT-10, DRC-01A, and DRC-01, along with reminders for personal hearings, were merely uploaded on the GST portal without being physically served or sent via Registered Post Acknowledgement Due (RPAD).
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The petitioner claimed to be unaware of the proceedings due to the lack of physical notices, preventing the submission of explanations or supporting documents. The High Court examined whether the GST assessment order could be sustained when statutory notices were only uploaded online without effective RPAD service, thus denying the taxpayer a fair hearing.
The Court found that uploading notices on the GST portal and sending SMS and email reminders were insufficient for effective service. It stressed the necessity of RPAD service as per the Court's directives. Consequently, the assessment order was deemed to violate natural justice principles and was set aside. The case was remanded for reconsideration, requiring the petitioner to deposit 10% of the disputed tax within four weeks and submit objections with supporting documents. The department was instructed to provide a 14-day notice for a personal hearing before issuing a fresh order on the merits.
Order Date - 05 October 2026
Parties: Tvl. SVB Constructions Vs Deputy State Tax Officer-2 / Deputy Commercial Tax Officer, Edappadi Assessment Circle, Salem-II
Facts -
- Tvl. SVB Constructions, represented by its Proprietor Rajeshwaran, challenged the assessment order dated 02.02.2026 and the consequential GST DRC-07 order passed by the Deputy State Tax Officer.
- The petitioner contended that notices in Forms GST ASMT-10, DRC-01A and DRC-01, along with personal hearing reminders, were uploaded only under the "View Additional Notices and Orders" tab of the GST portal.
- No physical notices were served or notices sent through Registered Post Acknowledgement Due (RPAD). Consequently, the petitioner remained unaware of the proceedings and could not submit explanations or supporting documents.
- The petitioner approached the High Court seeking an opportunity to contest the proceedings and expressed willingness to deposit 10% of the disputed tax amount.
Issue -
- Whether a GST assessment order is sustainable when statutory notices are uploaded only on the GST portal without effective service through RPAD, thereby denying the taxpayer an opportunity of being heard.
Order -
- The High Court observed that the notices were uploaded under the "View Additional Notices and Orders" tab of the GST portal without being physically served upon the petitioner. Merely sending SMS and email reminders was not considered sufficient in the circumstances.
- The Court emphasised that, apart from electronic communication, serving notices through RPAD is mandatory/advisable in view of the directions issued by the Court. Failure to follow the prescribed approach results in improper and ineffective service of notices.
- The Court held that the assessment order was passed in violation of the principles of natural justice and the Court's directions regarding service of notices through RPAD. Accordingly, the assessment order dated 02.02.2026 and consequential GST DRC-07 order were set aside.
- The matter was remanded for fresh consideration subject to the petitioner depositing 10% of the disputed tax within four weeks. The petitioner was also directed to file objections with supporting documents within four weeks, after which the department must provide 14 clear days' notice for personal hearing and pass a fresh order on merits.
