Facts of the Case

The petitioner, M/s Mohana Constructions, a proprietorship registered under GST (GSTIN 33AERPI7170Q1ZR), challenged an assessment order dated 06.08.2024 for the year 2019-20 passed by the Deputy State Tax Officer, Virudhunagar. The order was preceded by notice ASMT-10 (25.04.2024), show cause notice DRC-01 (16.05.2024), and three personal hearing notices (19.06.2024, 26.06.2024 and 04.07.2024), all issued under the CGST/TNGST Act, 2017. The petitioner did not respond to any of these notices and suffered an ex-parte adverse order. The petitioner's case was that the notices, sent only through the GST web portal, were never received in person, resulting in an adverse order without effective participation.

Issues Involved

  1. Whether service of statutory notices exclusively through the GST common portal amounts to sufficient service on a registered taxpayer.
  2. Whether an ex-parte order passed after such portal-only service violates natural justice.
  3. What relief, if any, is warranted where the taxpayer failed to respond but claims a case on merits.

Petitioner's Arguments

  • The notices were uploaded only on the GST web portal and never personally received, denying a real opportunity to respond.
  • The resultant ex-parte order therefore violated principles of natural justice and ought to be quashed.
  • The petitioner had a genuine case to argue on the merits of the tax demand once given an opportunity.

Respondent's Arguments

  • Represented by the Additional Government Pleader, the department maintained that service of notice through the GST portal is legally sufficient for a registered person.
  • Consented to disposal of the writ petition on terms rather than contesting it on merits.

Court Order / Findings

  • The Court held that a registered firm under GST cannot plead ignorance of statutory procedure, and portal service is sufficient; the natural justice challenge to quash the order outright was rejected.
  • However, noting the petitioner may have a case on merits and following its consistent practice in similar matters, the Court quashed the impugned order on terms, conditional on the petitioner depositing 25% of the disputed tax within 30 days, with the quashed order to be treated as an addendum to the DRC-01 show cause notice.
  • On compliance, the respondent was directed to pass fresh orders on merits within three months; on non-compliance, the writ was deemed dismissed in limine, leaving the department free to recover the dues.

Important Clarification

  • Registered GST taxpayers cannot invoke non-receipt of notices uploaded on the common portal as a natural justice ground to quash assessment orders, since portal upload is statutorily sufficient service.
  • Nonetheless, courts routinely grant conditional relief in ex-parte matters by quashing the order on a pre-deposit condition and treating it as an addendum to the original SCN, giving the assessee one genuine opportunity to contest on merits without reopening the service issue.

Sections Involved

  • Section 73, CGST/TNGST Act, 2017 – determination of tax not paid, short paid, other than fraud cases.
  • Form ASMT-10 and DRC-01, CGST Rules, 2017 – notice for discrepancy in returns and summary of show cause notice.
  • Common GST Portal service mechanism – statutory mode of service under Section 169 read with the GST Rules.

Decision – In Favour of

Disposed of with directions, in part in favour of the assessee — natural justice challenge failed, but conditional relief granted on 25% pre-deposit with fresh adjudication on merits directed.

Case Details

Madurai Bench of Madras High Court; W.P.(MD) No. 19138 of 2025 with W.M.P.(MD) Nos.14715 & 14717 of 2025; Coram: Hon'ble Mr Justice C. Saravanan; Date: 16.07.2025.

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.