Facts of the Case

The petitioners, Tvl. Abhinesh Enterprises, filed two connected writ petitions challenging assessment orders for the years 2017-18 and 2018-19 respectively, passed by the second respondent under the petitioner's GSTIN (33AMQPY0767Q1ZY) along with corresponding Form GST DRC-07 summaries dated 06.01.2023, alleging violation of the principles of natural justice and of statutory provisions.

Issues Involved

  1. Whether the petitioner was afforded a genuine opportunity to be heard before the impugned assessment orders were passed, given that the respondents claimed three notices were issued but the petitioner asserted these were communicated only through the portal and went unnoticed.

Petitioner's Arguments

  • The petitioner contended that the impugned orders were passed in gross violation of natural justice, without effective personal hearing.

Respondent's Arguments

  • The Special Government Pleader submitted that three separate opportunities (dated 15.12.2022, 26.12.2022 and 05.01.2023) had been granted, which the petitioner failed to avail, and therefore could not now claim non-grant of opportunity.

Court Order / Findings

  • The Court noted the petitioner's explanation that the intimations were sent only through the department's portal, which the petitioner failed to notice, and that the petitioner sought one further opportunity.
  • The impugned orders dated 06.01.2023 were quashed, with a direction to the respondents to grant one further opportunity, conduct the enquiry, and pass fresh orders within three weeks.
  • The petitioner was directed to attend the enquiry without fail and not seek any adjournment.

Important Clarification

  • Even where the department can show that multiple notices were issued through the online portal, courts remain willing to grant one final opportunity of hearing where the assessee shows a plausible explanation (such as failure to notice portal-only intimations) for its earlier non-participation — subject to a firm condition that no further adjournment will be tolerated.
  • This reflects a broader judicial trend of favouring substantive participation over strict enforcement of portal-based deemed service where the consequence is an ex-parte tax demand.

Sections Involved

  • Form GST DRC-07 under the CGST Rules, 2017 - the summary of the order creating demand, issued alongside the assessment.
  • Article 226 of the Constitution of India - invoked to challenge the assessment orders for violation of natural justice.

Decision – In Favour of

The writ petitions were allowed in favour of the Assessee; the assessment orders were quashed and one further opportunity of hearing directed.

Case Details

Madurai Bench of Madras High Court, W.P.(MD)Nos. 23113 and 23114 of 2023 with connected WMP(MD)Nos.19299, 19300, 19302 and 19303 of 2023; Coram: Hon'ble Mrs. Justice S. Srimathy; decided on 22 September 2023.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.