Facts of the Case

V.Nandakumar challenged an assessment order dated 19.05.2025 (GSTIN 33ALLPN9047N1ZF, Tax Period 2023-2024) calling upon him to pay tax of Rs.6,89,554/- along with interest and penalty. The order had been uploaded on the web portal, but the petitioner's GST registration had already been cancelled as far back as 14.09.2018, so he had no occasion to access the portal and hence no opportunity to respond before the order was passed.

Issues Involved

  1. Whether an assessment order uploaded on the GST portal against a taxpayer whose registration stood cancelled years earlier can be sustained without further opportunity.

Petitioner's Arguments

  • Since the petitioner's registration had been cancelled in 2018, he had no occasion to access the web portal on which the impugned order was uploaded, and thus no real opportunity to contest the proceedings.
  • Counsel undertook to remit 10% of the disputed amount within four weeks, and relied on the Allahabad High Court's decisions in M/s.Ahs Steels v. the Commissioner of State Taxes and M/s.Katyal Industries v. State of UP.

Respondent's Arguments

  • The Government Advocate appeared for the respondent; the order had been passed as per procedure following upload of the notice on the portal.

Court Order / Findings

  • The Court expressed agreement with the view taken by the Division Bench of the Allahabad High Court in M/s.Katyal Industries v. State of UP, and applied that reasoning to the present facts.
  • The impugned order was set aside; the petitioner was directed to file a reply to the show-cause notice within 30 days, with the impugned (quashed) order itself to be treated as the show-cause notice.
  • The respondent was permitted to issue a fresh order on merits, preferably within three months, after hearing the petitioner. If the petitioner failed to comply, the respondent could treat the writ petition as if dismissed in limine for laches.
  • On payment of the 10% predeposit as undertaken, the attachment on the petitioner's bank account was directed to be lifted.

Important Clarification

  • Where a taxpayer's GST registration was cancelled well before an assessment order was uploaded purely on the web portal, courts recognise that the taxpayer would have had no practical means of accessing that notice, and will set aside the order — treating it as a fresh show-cause notice — rather than treating limitation or non-response as fatal, following the Katyal Industries line of Allahabad High Court authority now being applied elsewhere too.
  • Such relief is commonly conditioned on the taxpayer paying a percentage (here 10%) of the disputed tax as a good-faith deposit, in exchange for which any bank attachment is lifted pending the fresh proceedings.

Sections Involved

  • Central/Tamil Nadu Goods and Services Tax Act, 2017 – assessment framework under which the impugned order was passed, and portal-based service of notices.

Decision – In Favour of

Decided in favour of the Assessee. Order set aside and treated as a fresh SCN, subject to 10% predeposit.

Case Details

  • Court: Madurai Bench of Madras High Court
  • Case No.: W.P(MD) No. 30982 of 2025 and W.M.P.(MD) No. 24190 of 2025
  • Coram: Hon'ble Mr. Justice G.R. Swaminathan
  • Date of Order: 31 October 2025

Link to Download the Order

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