Facts of the Case

The petitioner, C. Balasubramanian, a contractor registered under GST in Tirunelveli, suffered an ex-parte assessment order dated 10.02.2025 for tax period 2020-21, along with a consequential summary of order in Form GST DRC-07. The petitioner contended that since the notice was served only through the online portal, he was unaware of the proceedings and could not respond in time. As a result, his Electronic Credit Ledger (ITC account) was attached. He approached the Madurai Bench of the Madras High Court seeking to quash the order and for a fresh assessment after a personal hearing.

Issues Involved

  1. Whether an ex-parte GST assessment order, passed after service only through the online portal, should be set aside to allow the taxpayer an opportunity of personal hearing.
  2. On what terms should such relief be granted, given that similar reliefs in comparable matters were conditioned on part-deposit of the disputed tax.

Petitioner's Arguments

  • The impugned order was passed ex-parte as notice was served only through the online portal, of which the petitioner was unaware.
  • The petitioner should be granted a fresh opportunity of personal hearing before any final order is passed.

Respondent's Arguments

  • In similar matters, this Court has granted relief by directing the assessee to deposit 25% of the disputed tax amount as a condition for setting aside the ex-parte order.

Court Order / Findings

  • The Court directed the petitioner to deposit 25% of the disputed tax amount through the electronic cash ledger within thirty days, upon which the attachment on the petitioner's ITC account would stand raised and the impugned order would stand quashed.
  • The petitioner was directed to reply to the show cause notice within thirty days thereafter, following which the respondent must grant a personal hearing and pass a final order within two months.
  • It was clarified that if the petitioner failed to deposit the amount and file the reply within the stipulated period, the benefit of the order would stand automatically recalled and the original order could be enforced.

Important Clarification

  • In a recurring pattern before the Madurai Bench, ex-parte GST assessment orders arising from portal-only service are set aside on condition of a 25% pre-deposit of the disputed tax, coupled with release of any ITC ledger attachment, a fresh reply opportunity, and a time-bound personal hearing – with automatic revival of the original order on default.

Sections Involved

  • Form GST DRC-07 – summary of the ex-parte assessment order.
  • Electronic Credit Ledger (Rule 86, CGST Rules, 2017) – ledger that was attached and ordered to be released.

Decision – In Favour of

Disposed of in favour of the Assessee, conditional on 25% pre-deposit; the ex-parte order was quashed subject to compliance, and the matter sent back for a fresh order after personal hearing.

Case Details

Madurai Bench of Madras High Court; W.P(MD)No.32576 of 2025 with W.M.P.(MD)No.25661 of 2025; Coram: Hon'ble Mr. Justice G.R. Swaminathan; Order dated 14.11.2025.

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