Facts of the Case

The petitioner, Tvl. Thai Medicals and Generals, a GST registrant in Dindigul district, suffered an ex-parte assessment order for tax period 2019-20, evidenced by a summary of order in Form GST DRC-07 dated 30.10.2023. The petitioner's case was that since notice was served only through the online portal, it remained unaware of the proceedings, resulting in an attachment on its Electronic Credit Ledger (ITC account). It approached the Madurai Bench of the Madras High Court for quashing of the order and a fresh assessment after personal hearing.

Issues Involved

  1. Whether an ex-parte GST assessment order arising from portal-only service should be set aside to allow the taxpayer an opportunity of personal hearing, and on what terms.

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 sought a fresh assessment after being afforded a personal hearing.

Respondent's Arguments

  • In similar matters, this Court has granted relief on the assessee depositing 25% of the disputed tax amount.

Court Order / Findings

  • The Court directed the petitioner to deposit 25% of the disputed tax through the electronic cash ledger within thirty days, upon which the ITC-account attachment 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, with a personal hearing and final order to follow within two months.
  • Non-compliance within the stipulated period would result in automatic recall of the order's benefit, reviving the original assessment.

Important Clarification

  • This is part of a consistent pattern before the Madurai Bench of setting aside portal-only ex-parte GST assessment orders on a 25% pre-deposit, coupled with release of the ITC ledger attachment, a fresh reply opportunity, and a time-bound personal hearing.

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 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.32618 of 2025 with W.M.P.(MD)No.25718 of 2025; Coram: Hon'ble Mr. Justice G.R. Swaminathan; Order dated 14.11.2025.

Link to Download the Order

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