Ex-parte assessment order set aside for violating natural justice; petitioner to get personal hearing under Section 10A

The HC set aside the ex-parte assessment order due to violation of natural justice, as the petitioner was not properly served with a notice of personal hearing. The petitioner was deprived of the opportunity to be heard since the notice was only placed under "Additional Notices and Orders." The court directed that the petitioner be granted a chance to file a show cause and appear for a personal hearing before the Respondent Authorities within three weeks. The application was allowed accordingly.

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ISSUES:

Whether an ex parte assessment order passed under Section 73(9) of the BGST Act, 2017 without a reasoned and detailed order and without service of any notice as contemplated under Section 169 of the BGST Act, 2017 is valid.Whether mere uploading of notices under the heading 'Additional Notices and Orders' on the GST portal constitutes valid service of notice under Section 169 of the BGST Act, 2017.Whether the failure to serve show cause notices and reminders by a valid mode, and the consequent denial of opportunity of hearing under Section 75(4) and 75(5) of the BGST Act, 2017, violates principles of natural justice.Whether the impugned ex parte assessment order is liable to be quashed for non-compliance with statutory procedural requirements and violation of natural justice.

RULINGS / HOLDINGS:

The ex parte assessment order dated 06.02.2025 passed under Section 73(9) of the BGST Act, 2017 without passing a reasoned and detailed order and merely confirming the demand raised in DRC-01 is non-est in the eyes of law and liable to be quashed.Mere uploading of notices under the heading 'Additional Notices and Orders' on the GST portal does not amount to valid service of notice as required under Section 169 of the BGST Act, 2017.Failure to serve show cause notices and reminders by a valid mode and denial of opportunity of hearing under Sections 75(4) and 75(5) of the BGST Act, 2017 amounts to violation of the principles of natural justice, rendering the impugned order liable to be quashed and set aside.The impugned assessment order is an ex parte order as notices were not served in accordance with Section 169 of the BGST Act, 2017 and the petitioner was not granted an opportunity of hearing, thus the order is liable to be set aside.

RATIONALE:

The Court applied the statutory framework under the Bihar Goods and Services Tax Act, 2017, specifically Sections 73(9), 75(4), 75(5), and 169, which govern assessment procedures, service of notices, and the right to hearing.Precedent judgments emphasized that effective service of notice requires at least two modes of communication to ensure the assessee's awareness, and mere uploading on a common portal without additional communication is insufficient.The Court recognized the fundamental principle of natural justice that mandates an opportunity of hearing before passing any adverse order, as conferred by Section 75(4) of the BGST Act, 2017.The absence of a reasoned order and failure to comply with service requirements under Section 169 rendered the impugned order legally unsustainable.No dissent or doctrinal shift was indicated; the Court followed established legal principles and recent judicial pronouncements favoring effective notice and hearing rights.

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