Facts of the Case

The petitioner, a contractor registered under GSTIN 33ACDPB1805H1ZD, challenged an ex-parte assessment order dated 21 August 2024 for the tax period 2019-2020 and the consequential summary order in Form GST DRC-07, contending that since notice was served only through the online portal, he remained unaware of the proceedings.

Issues Involved

  1. Whether the ex-parte assessment order, passed on the strength of notice served only through the online portal, deserved to be quashed and the petitioner granted a fresh opportunity.

Petitioner's Arguments

  • The notice was uploaded only on the online GST portal, of which the petitioner had no knowledge, resulting in an ex-parte order without any real opportunity of hearing.

Respondent's Arguments

  • The learned Additional Government Pleader submitted that in similar matters, relief has been granted on condition of the assessee depositing 25% of the disputed tax amount.

Court Order / Findings

  • Accepting the petitioner's undertaking to deposit 25% of the disputed tax through the electronic cash ledger within 30 days, the Court quashed the impugned order on that condition and directed the attachment on the petitioner's ITC account to be lifted upon compliance.
  • The petitioner was directed to file a reply to the show cause notice within 30 days of the deposit, following which the respondent must grant a personal hearing and pass a final order within two months.
  • If the petitioner fails to deposit the amount or file the reply within the stipulated period, the benefit of the order stands automatically recalled and the original impugned order becomes enforceable again.

Important Clarification

  • Where a GST demand has been confirmed ex-parte solely on portal-based service, Madras High Court routinely grants conditional relief – quashing the order subject to part-deposit of the disputed tax and a fresh opportunity of hearing – rather than an unconditional remand.

Sections Involved

  • Assessment order and consequential summary in Form GST DRC-07 – ex-parte proceedings for non-response to portal-served notice.

Decision – In Favour of

Disposed of in favour of the Assessee, subject to compliance with the 25% pre-deposit condition and timely filing of reply; failing which the original order stands automatically revived.

Case Details

  • Court: Madurai Bench of Madras High Court
  • Case No.: W.P(MD) No. 32575 of 2025
  • Coram: Hon'ble Justice G.R. Swaminathan
  • Date of Order: 14 November 2025

Link to Download the Order

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