Facts of the Case

The petitioner, Tvl. Bright Tech Engineering Industries, challenged an assessment order dated 05.06.2024 (relating to GSTIN No.33DHGPP945R1ZF for tax period 2019-20) passed by the Deputy State Tax Officer-1, Karur, preceded by a Show Cause Notice in Form GST DRC-01 dated 14.10.2023. The petitioner's case was that the notice was never actually received but was only hosted on the GST website, which went unnoticed; the petitioner became aware of the impugned order only upon initiation of recovery proceedings for the tax period in question.

Issues Involved

  1. Whether an assessment order passed pursuant to a DRC-01 notice hosted only on the GST portal, and not otherwise brought to the assessee's notice, should be set aside.
  2. The conditions on which such relief ought to be granted, consistent with the Court's settled practice.

Petitioner's Arguments

  • The DRC-01 notice was not received but merely hosted on the website and went unnoticed, resulting in an ex-parte assessment in violation of the principles of natural justice.
  • The order should be quashed and the assessment re-done afresh after affording an opportunity of personal hearing.

Respondent's Arguments

  • The Government Advocate for the respondent did not press any substantive extenuating circumstance distinguishing the case from the Court's consistent line of similar orders.

Court Order / Findings

  • Considering the consistent view taken by the Court in similar circumstances — where relief is granted subject to payment of a portion of the disputed tax — and finding no extenuating circumstances to depart from that practice, the Court disposed of the writ petition on the same terms.
  • The impugned order was quashed subject to the petitioner depositing 25% of the disputed tax from the Electronic Cash Register within 30 days, with the matter remitted for fresh consideration.
  • The petitioner was directed to file a reply to the DRC-01 notice within the same period, with the quashed order to be treated as an addendum to the show cause notice; the respondent was directed to pass a fresh, reasoned order after hearing the petitioner, preferably within three months.
  • Non-compliance with the conditions would result in the writ petition being deemed dismissed, leaving the respondent free to proceed under the GST enactments.

Important Clarification

  • Where a Show Cause Notice in Form GST DRC-01 is merely hosted on the GST portal and not otherwise brought to the assessee's effective notice, Courts, following consistent precedent, quash the resultant ex-parte assessment order conditional on a 25% pre-deposit of the disputed tax and remit the matter for a fresh, reasoned order after hearing — with the writ petition deemed dismissed on non-compliance.

Sections Involved

  • Section 73 of the TNGST/CGST Act, 2017 — determination of tax and the assessment procedure culminating in the impugned order.
  • Form GST DRC-01 — the intimation/show cause notice preceding assessment.

Decision – In Favour of

Allowed on terms, in favour of the Assessee — assessment order quashed subject to 25% pre-deposit and remitted for fresh consideration.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P(MD)No.20509 of 2025 and W.M.P(MD)No.15874 of 2025
Coram: Hon'ble Mr. Justice C. Saravanan
Date of Order: 29.07.2025

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