Madras High Court Sets Aside GST Assessment for Improper Service of Notice
A recent judgement by the Madurai Bench of the Madras High Court has set aside a GST-related tax assessment order in Tamil Nadu.
The Madras High Court held that GST officers cannot pass orders only based on portal notices without giving taxpayers a fair chance to respond and must properly serve notices through other legal methods.
The bench of Justice KrishnanRamasamy said that although sending notices through the GST portal is legally allowed, tax officers should not blindly pass orders without hearing the taxpayer just because there is no response on the portal.
If a taxpayer does not reply online, the officers must also try other methods of sending notices, such as registered post (RPAD), as mentioned in Section 169 of the GST Act. If they do not properly serve the notice using these methods, the service is considered ineffective. This goes against the purpose of the law, which is to give taxpayers a fair chance to respond.
The applicant said that all notices and messages were sent only through the GST portal. Because of this, they did not come to know about the case in time. As a result, they could not reply within the required period.
Due to the lack of response, the tax authority completed the assessment without hearing the applicant (ex parte).
During the hearing, the State tax officer argued that since the notices were uploaded on the GST portal, the applicant was considered informed. Therefore, according to the State tax officer, there was no need to give a separate personal hearing before passing the order.
The applicant, however, expressed their willingness to deposit 25% of the disputed tax amount if the matter is sent back for fresh consideration. They requested that the case be remanded so they can get a proper opportunity to present their case.
The court said that passing an ex parte order just to complete formal procedures is wrong. Such actions only lead to unnecessary court cases and waste the time of government officers, appellate authorities, tribunals, and higher courts.
The court emphasised that proper and effective service of notice is very important. It ensures that people get a fair chance to be heard, follows the principles of natural justice, and helps achieve the true objectives of the GST system. Without proper notice, justice cannot be properly done.
The High Court allowed the writ petition and cancelled the earlier tax assessment order. The case was sent back to the assessing officer to be reviewed again. However, this relief was given on the condition that the applicant must first deposit 25% of the disputed tax amount within four weeks.
HC further added that the applicant must submit a reply along with all supporting documents within three weeks, and the assessing authority must give the applicant at least 14 days notice for a personal hearing. After hearing the applicant, the officer must pass a fresh order based on the facts and law.
The court also pointed out that GST proceedings must follow proper legal procedures and also provide taxpayers fair and real opportunity to present their case before any negative order is passed against them.
Case citation: Tvl Nagappa Textiles Vs State Tax Officer (Madras High Court); W.P.(MD)No.1317 of 2026 & W.M.P(MD)No. 1039 of 2026;21/01/2026; 2019-20.
