Facts of the Case

Tvl M. Muthukumar Store challenged an order dated 12.02.2025 passed by the Deputy State Tax Officer-I, Melur Assessment Circle, for tax period 2021-22, on the ground that all notices and communications had only been uploaded on the GST common portal, of which the petitioner remained unaware, resulting in an ex-parte order confirming the show cause notice proposals without any opportunity of personal hearing. The petitioner offered to pay 25% of the disputed tax if given a fresh opportunity, and the Additional Government Pleader for the respondent fairly admitted that no personal hearing had in fact been afforded.

Issues Involved

  1. Whether uploading notices only on the GST portal, without exploring other prescribed modes of service, is adequate when the taxpayer does not respond to repeated reminders.
  2. Whether an assessing officer is obligated to attempt alternate modes of service under Section 169(1) — such as RPAD — before passing an ex-parte order.
  3. What conditions should attach to setting aside such an ex-parte order.

Petitioner's Arguments

  • Submitted that being unaware of the notices uploaded only on the GST portal, the petitioner failed to file a reply in time, and the impugned order was passed without any opportunity of personal hearing.
  • Offered to pay 25% of the disputed tax amount in exchange for an opportunity to present the case before the respondent.

Respondent's Arguments

  • The Additional Government Pleader admitted that notices had been uploaded only on the GST portal and that no opportunity of personal hearing had actually been provided prior to the impugned order.
  • Requested that the matter be remitted subject to the 25% pre-deposit condition proposed by the petitioner.

Court Order / Findings

  • The Court held that sending notice by uploading on the portal is, in law, sufficient service, but that an officer issuing repeated reminders without any taxpayer response should have explored other valid modes of service under Section 169, preferably by Registered Post with Acknowledgement Due (RPAD).
  • Held that merely fulfilling the empty formality of portal-only notice, without exploring alternate modes when there is no response, does not serve the object of the GST Act and only breeds multiplicity of litigation, warranting interference here for lack of effective service.
  • Set aside the impugned order dated 12.02.2025, remanding the matter for fresh consideration conditional on the petitioner paying 25% of the disputed tax within four weeks, with the setting-aside to take effect only from the date of payment.
  • Directed the petitioner to file a reply within three weeks of payment, whereupon the respondent shall issue 14 days' clear hearing notice and pass fresh orders on merits.

Important Clarification

  • While portal upload of a GST notice remains valid, legally sufficient service under the Act, officers are now expected — as a matter of good administrative practice — to explore additional modes of service such as RPAD under Section 169(1) when a taxpayer does not respond, to avoid unnecessary ex-parte orders and consequent litigation.
  • This represents an important practical clarification distinct from cases holding portal service per se invalid: here, the Court accepted the legal validity of portal service, but still required more diligent follow-up before an ex-parte order is passed.

Sections Involved

  • Section 169, CGST Act, 2017 – prescribes the modes of service of notices and orders, including electronic and RPAD service.
  • FORM GST DRC-07, CGST Rules, 2017 – the summary order that was set aside pending fresh proceedings.

Decision – In Favour of

Disposed of on a conditional basis, in substance in favour of the assessee — the ex-parte order was set aside, subject to a 25% pre-deposit and a fresh notice and hearing opportunity.

Case Details

  • Court: Madurai Bench of the Madras High Court
  • Case No.: W.P.(MD)No.36134 of 2025 & W.M.P.(MD)No.28742 of 2025
  • Coram: Hon'ble Mr. Justice Krishnan Ramasamy
  • Date of Order: 18 December 2025

Link to Download the Order

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