Facts of the Case

The petitioner, Tvl. Aruna Maligai, proprietor S. Saravanan (GSTIN 33ABDPS3446E1ZV), challenged an order dated 22.04.2024 in FORM GST DRC-07, bearing Ref No. ZD330424159178B, for the financial year 2018-19, passed by the Deputy State Tax Officer-I, Palakarai Assessment Circle, Tiruchirappalli. The petitioner's case was that all notices and communications had been uploaded only on the GST common portal, of which the petitioner was unaware, and consequently could not file a reply within time, leading to an ex-parte order confirming the show cause proposals without any personal hearing.

Issues Involved

  1. Whether service of a show cause notice solely by uploading on the GST common portal, without exploring other modes under Section 169 when there is no response from the taxpayer, satisfies the requirement of effective service.
  2. Whether an ex-parte assessment order passed without personal hearing can be sustained where the petitioner is willing to pay a part of the disputed tax.

Petitioner's Arguments

  • The petitioner was unaware of the show cause notice uploaded only on the GST portal, and consequently the impugned order was passed without any opportunity of personal hearing.
  • The petitioner offered to pay 25% of the disputed tax amount in exchange for an opportunity to present its case afresh.

Respondent's Arguments

  • The notices had been duly uploaded on the GST Online Portal, but the petitioner failed to avail the opportunity; the Additional Government Pleader, however, fairly admitted that no personal hearing had been granted prior to the impugned order.
  • The respondent did not oppose remand subject to the petitioner paying 25% of the disputed tax, as offered.

Court Order / Findings

  • The Court held that while service by uploading on the portal is a sufficient mode under the Act, an Officer receiving no response to repeated reminders should have explored other modes of service prescribed under Section 169 of the GST Act, particularly RPAD, rather than mechanically passing an ex-parte order on empty formalities.
  • Observing that failure to do so results in multiplicity of litigation and wastes the time of the Appellate Authority and the courts, the Court found there was a genuine lack of effective service in the present case.
  • Given the petitioner's offer to pay 25% of the disputed tax, the Court set aside the impugned order dated 22.04.2024 and remanded the matter, conditional on payment of 25% of the disputed tax within four weeks, with the setting-aside taking effect only from the date of such payment.
  • The petitioner was directed to file its reply/objections within three weeks of payment, following which the respondent must issue a 14-day clear notice fixing a personal hearing and pass a fresh, reasoned order on merits.

Important Clarification

  • Uploading a show cause notice on the GST common portal is a legally sufficient mode of service under Section 169, but where the taxpayer does not respond despite repeated reminders, the assessing officer is expected to additionally explore other prescribed modes — particularly registered post — before proceeding ex-parte, to avoid needless multiplication of litigation.
  • Courts frequently condition the setting-aside of an ex-parte GST order on payment of a percentage of the disputed tax where the assessee voluntarily offers such payment, balancing the interest of revenue against the denial of a personal hearing.

Sections Involved

  • FORM GST DRC-07 – summary of the order confirming the demand ex-parte.
  • Section 169, CGST Act, 2017 – prescribes multiple modes of service of notices, orders and communications, including RPAD where portal service proves ineffective.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee — the ex-parte order was set aside on a conditional remand requiring payment of 25% of the disputed tax and a fresh personal hearing.

Case Details

  • Court: Madurai Bench of Madras High Court
  • Case No.: W.P.(MD) No. 35226 of 2025 (with W.M.P.(MD) Nos. 27927 and 27928 of 2025)
  • Coram: Hon'ble Mr. Justice Krishnan Ramasamy
  • Date of Order: 9 December 2025

Link to Download the Order

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