Facts of the Case

The petitioner, a partnership firm, challenged an ex parte assessment order dated 31.08.2023 passed under Section 73(9) of the BGST Act, 2017 for FY 2017-18, along with the consequential demand in Form DRC-07, on the ground that it was passed without granting an opportunity of hearing under Section 75(4) and without valid service of the show-cause notice as required under Section 169. The department's stand was that the notice had been uploaded on the GST Portal and that the petitioner had been given an option to appear but chose not to.

Issues Involved

  1. Whether mere uploading of notices under the 'Additional Notices and Orders' tab on the GST portal amounts to valid service under Section 169 of the BGST Act.
  2. Whether the ex parte assessment order was vitiated for denial of an opportunity of personal hearing under Section 75(4).

Petitioner's Arguments

  • Certain proceedings were uploaded only through the Portal, contrary to Section 169 of the GST Act, 2017.
  • The petitioner was entitled to an oral/personal hearing under Section 75(4), which was never provided.

Respondent's Arguments

  • The notice gave the petitioner the option to appear, and having chosen not to, the petitioner cannot now complain of a Section 75(4) violation.
  • Proceedings initiated against the petitioner were duly uploaded on the Portal, so there was no violation of Section 169.

Court Order / Findings

  • The show-cause notice dated 14.03.2023 itself showed the columns for date, time and venue of personal hearing marked 'NA' -- meaning the petitioner was never in a position to choose or attend a personal hearing at all, making out a clear case of denial under Section 75(4).
  • On non-compliance with Section 169, the Court held that merely uploading proceedings on the Portal is not sufficient; a registered taxpayer cannot be expected to check the Portal every day for updates, and the department is bound to comply with a minimum of two of the modes of service specified in Section 169.
  • Both the assessment order and consequential proceedings were set aside for these twin defects.
  • The competent authority was directed to fix a specific date, time and venue for personal hearing, with 15 days' advance notice, and thereafter proceed strictly in accordance with the GST Act within four months.

Important Clarification

  • A show-cause notice that leaves the date, time and venue for personal hearing blank or marked 'NA' effectively denies the assessee any opportunity of hearing under Section 75(4), regardless of whether the assessee was otherwise informally aware of the proceedings.
  • Mere uploading of a notice or order on the GST common portal, without adopting at least two of the modes of service prescribed under Section 169 of the GST Act, does not amount to valid service -- a taxpayer cannot be expected to monitor the portal daily.

Sections Involved

  • Section 73(9), BGST Act, 2017 -- determination of tax not paid, other than by reason of fraud.
  • Section 75(4), BGST Act, 2017 -- mandatory opportunity of personal hearing.
  • Section 169, BGST Act, 2017 -- modes of service of notices, orders and other communications.

Decision – In Favour of

Assessee. The assessment order was set aside for want of valid service under Section 169 and denial of personal hearing under Section 75(4), with fresh hearing directed.

Case Details

High Court of Judicature at Patna; Civil Writ Jurisdiction Case No. 5661 of 2025; Coram: Justice P.B. Bajanthri and Justice S.B. Pd. Singh; Order dated 09.07.2025.

Link to Download the Order

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