HC quashes timber trader's tax assessment for denying fair hearing through online-only notices under TNGST Act Section 169

HC set aside assessment order against timber trader due to violation of natural justice principles. All notices were issued only through online portal under TNGST Act 2017 Section 169(d). Petitioner, being uneducated and unfamiliar with online technology, could not access notices and was denied hearing opportunity. Court noted that Section 169 provides alternative notice modes beyond online portal. Matter remitted for fresh assessment with proper hearing opportunity. Respondent directed to explore other notice delivery methods to ensure accessibility for all taxpayers.

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Issues Involved:
The issues involved in the judgment are the validity of the order passed by the respondent based on discrepancies found in the Returns filed by the petitioner for the Assessment Year 2019-2020, the lack of opportunity for the petitioner to be heard before the order was passed, and the mode of service of notice by the respondent as per Section 169(d) of the TNGST Act 2017.

Validity of Order:
The petitioner, a Timber Trader, challenged the order passed by the respondent alleging that it was done without providing an opportunity of hearing. The petitioner, not well-versed with online portals, claimed ignorance of the notices issued through the portal. The respondent argued that notices were sent through the online portal as per Section 169(d) of the TNGST Act, and the petitioner should have verified and presented his case during the enquiry. The respondent contended that the petitioner failed to provide any materials during the enquiry and has the option to appeal the order.

Mode of Service of Notice:
Section 169(d) of the Tamil Nadu Goods and Services Tax Act 2017 outlines various methods of serving notices, including through the common portal. The petitioner, being unfamiliar with advanced technology, argued that he only submitted returns through his Auditor and was not aware of the notices uploaded on the portal. The Court acknowledged that while Section 169(d) allows for notice issuance through the common portal, other modes are also available to the respondent. Citing previous judgments, the Court emphasized the importance of ensuring proper communication methods, especially in cases where technical issues may affect online portals.

Decision:
In light of previous rulings and considering the petitioner's lack of familiarity with online processes, the Court allowed the writ petition, setting aside the impugned order and remitting the case back to the respondent for fresh consideration. The respondent was directed to provide an opportunity of hearing to the petitioner and explore alternative modes of issuing notices as per Section 169 of the TNGST Act 2017. The petitioner was instructed to appear before the respondent with necessary documents, and the respondent was given a deadline for passing appropriate orders. No costs were awarded in this matter.

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