Facts of the Case

M/s. Hi Tech Foams challenged an assessment order dated 27.08.2024 (GSTIN 33AAHFH3859D1ZI, tax period 2019-20), passed after the show cause notice and three reminders were all uploaded solely on the GST common portal. The petitioner claimed it remained unaware of the notices and was thus deprived of a personal hearing before the order confirmed the proposed demand. The Revenue had already recovered around 15% of the disputed amount, and the petitioner offered to pay the remaining 10% to secure a fresh opportunity to contest the matter.

Issues Involved

  1. Whether repeatedly uploading notices only on the GST portal, without exploring other modes of service under Section 169 when there is no response, amounts to effective service.
  2. Whether an ex parte order passed in such circumstances, without any personal hearing, is sustainable.

Petitioner's Arguments

  • All communications, including the show cause notice and reminders, were uploaded only on the GST portal; the petitioner was unaware of them and could not respond in time.
  • The petitioner was willing to pay the remaining 10% of the disputed tax (having already had 15% recovered) in exchange for a fresh opportunity to present its case.

Respondent's Arguments

  • The department had uploaded the notices on the GST portal, which the petitioner failed to access; but the Additional Government Pleader fairly admitted no personal hearing opportunity was in fact given before the order.
  • Requested that the matter be remitted subject to payment of the remaining 10% of the disputed tax as agreed by the petitioner.

Court Order / Findings

  • While portal upload is a sufficient mode of service, an officer who receives no response despite repeated reminders should explore other prescribed modes of service under Section 169 of the GST Act, preferably registered post (RPAD), rather than mechanically repeating the same mode.
  • Passing an ex parte order after only fulfilling this 'empty formality' does not serve any useful purpose and only breeds further litigation, burdening the officer, the Appellate Authority/Tribunal, and the Court.
  • The Court found a lack of effective opportunity being provided to the petitioner and, considering the offer to pay the balance 10% of the disputed tax, set aside the impugned order dated 27.08.2024 and remanded the matter for fresh consideration on that condition.
  • The petitioner was directed to file its reply/objection within three weeks of payment, after which the respondent must issue a 14-day clear notice fixing a personal hearing date before passing a fresh order on merits.

Important Clarification

  • Portal upload alone, though a legally valid mode of service under Section 169, is not enough when repeated non-response signals the assessee is not actually receiving notice — officers are expected to escalate to another prescribed mode, such as RPAD, before proceeding ex parte.
  • This reasoning has become a recurring template in Madras High Court GST cases: an ex parte order following portal-only notices is routinely set aside on a percentage deposit condition once the assessee shows genuine unawareness.

Sections Involved

  • Section 169, CGST Act, 2017 — modes of service of notices/orders, including portal upload and RPAD.
  • Section 73, CGST/TNGST Act, 2017 — determination of tax not involving fraud or suppression.

Decision – In Favour of

In favour of the Assessee — the ex parte order is set aside and remanded on payment of the remaining 10% of the disputed tax, with a fresh personal hearing to follow.

Case Details

Madurai Bench of Madras High Court; W.P.(MD) No. 112 of 2026 and W.M.P.(MD) No. 104 of 2026; Coram: Hon'ble Mr. Justice Krishnan Ramasamy; Order dated 06.01.2026.

Link to Download the Order

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