Facts of the Case

The petitioner, Tvl. Rajeswari Thermoplast, challenged an ex-parte order passed by the Assistant Commissioner (ST), Tuticorin III Assessment Circle, dated 12.04.2024 (GSTIN 33ACYPA5529Q1ZX/2018-19), along with a consequential rectification order dated 18.11.2024. The petitioner submitted that since notice had been served only through the online portal, it remained unaware of the proceedings until its Input Tax Credit account came to be attached.

Issues Involved

  1. Whether the ex-parte order, passed on the basis of notice served only through the online portal, was liable to be set aside for denial of a genuine opportunity to be heard.
  2. On what terms such relief should be granted, given similar reliefs granted by the Court in comparable matters.

Petitioner's Arguments

  • Since notice was served only through the online portal, the petitioner was not aware of the proceedings that culminated in the ex-parte order.

Respondent's Arguments

  • The learned Government Advocate submitted that in similar matters, relief had been granted by directing the assessee to deposit 25% of the disputed tax amount as a condition.

Court Order / Findings

  • Recording the petitioner's undertaking to deposit 25% of the disputed tax amount through the electronic cash ledger within thirty days, the Court directed that, upon such compliance, the attachment on the petitioner's ITC account shall be raised forthwith and the impugned order shall stand quashed.
  • The petitioner was directed to thereafter reply to the show cause notice within thirty days, with the respondent to provide an opportunity of personal hearing and pass a final order within two months thereafter.
  • If the petitioner failed to deposit the pre-deposit and/or file its reply within the stipulated period, the benefit of the order would stand automatically recalled and the impugned order could be enforced as originally passed.

Important Clarification

  • For ex-parte GST orders passed on the strength of notice served solely through the online portal, Madras High Court has developed a consistent practice of quashing the order conditional on a 25% pre-deposit, with corresponding release of any ITC/bank attachment, a fresh reply window, and a mandatory personal hearing before a final order — all self-executing and automatically recalled on non-compliance.
  • This template balances the assessee's natural justice grievance against the revenue's interest in securing part of the disputed demand pending fresh adjudication.

Sections Involved

  • Principles of Natural Justice under the GST Act, 2017 – underlying basis for setting aside the ex-parte order.
  • Electronic Cash Ledger / ITC Ledger provisions, GST Act, 2017 – mechanisms through which the pre-deposit was to be made and the attachment released.

Decision – In Favour of

The petition is disposed of in favour of the Assessee on a conditional basis — the ex-parte order is quashed subject to a 25% pre-deposit, with the ITC attachment to be released and a fresh personal hearing to follow.

Case Details

  • Court: Madurai Bench of Madras High Court
  • Case No.: W.P(MD) No.26803 of 2025 with W.M.P(MD) No.20790 of 2025
  • Coram: Hon'ble Mr. Justice G.R. Swaminathan
  • Date of Order: 25.09.2025

Link to Download the Order

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