GST order quashed for non-service of DRC-01 notice violating natural justice principles, case remitted back

The Madras HC quashed an order dated 13.02.2025 due to violation of natural justice principles, as the petitioner was not served with GST DRC-01 notice dated 20.11.2024 through web portal or registered post. The court noted petitioner had paid Rs. 3,33,397/- for April 2020-March 2021 period per Form GST DRC-03 dated 11.04.2023. The case was remitted back to respondent for fresh order on merits. The impugned order was treated as addendum to the original notice, with directions to transmit notice copy to petitioner within fifteen days. Petition disposed through remand.

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The Madras High Court, through Justice C. Saravanan, quashed the impugned order dated 13.02.2025 passed by the respondent in ARN: AD331124045012W/2020-21, holding that the petitioner was not served with the GST notice DRC-01 dated 20.11.2024 "either through the web portal or by registered post AD," violating principles of natural justice under the GST Act. The Court emphasized the necessity of providing the petitioner an opportunity of personal hearing before assessment.The Court noted the Government Advocate's contention that the notice was uploaded and unresponded to, and that the petitioner had forfeited the right to appeal under Section 107 of the TNGST Act. However, after reviewing the petitioner's payment record (Form GST DRC-03 dated 11.04.2023), the Court remitted the matter for a fresh assessment on merits.Directions included treating the impugned order as an addendum to the original notice, transmitting the notice to the petitioner within 15 days, and allowing the petitioner to file a reply. The respondent must pass a fresh order expeditiously, preferably within three months. Failure to comply would permit the respondent to proceed as if the writ petition was dismissed.The writ petition was disposed of with no order as to costs.

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