TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Show Cause Notice Must Be Served Properly Under Section 169(1) GST Act, Not Just Uploaded Online</h1> <h3>M/s. G.R. Jewellers Versus The Deputy State Tax Officer (ST), Chennai</h3> The HC held that issuing a show cause notice solely by uploading it on the GST portal without serving a physical copy did not constitute effective ... Violation of principles of natural justice - proper service of notice or not - issuance of SCN by uploading the same in the GST portal, without serving physical copy of the same to the petitioner - petitioner not heard before passing the impugned order - HELD THAT:- No doubt sending notice by uploading in portal is a sufficient service, but, the Officer who is sending the repeated reminders, inspite of the fact that no response from the petitioner to the show cause notices etc., the Officer should have applied his/her mind and explored the possibility of sending notices by way of other modes prescribed in Section 169 of the GST Act, which are also the valid mode of service under the Act, otherwise it will not be an effective service, rather, it would only fulfilling the empty formalities. Merely passing an ex parte order by fulfilling the empty formalities will not serve any useful purpose and the same will only pave way for multiplicity of litigations, not only wasting the time of the Officer concerned, but also the precious time of the Appellate Authority/Tribunal and this Court as well. Thus, when there is no response from the tax payer to the notice sent through a particular mode, the Officer who is issuing notices should strictly explore the possibilities of sending notices through some other mode as prescribed in Section 169(1) of the Act, preferably by way of RPAD, which would ultimately achieve the object of the GST Act. This Court finds that there is a lack of opportunities being provided to serve the notices/orders etc., effectively to the petitioner. In such circumstances, this Court is of the view that the impugned assessment order came to be passed without affording any opportunity of personal hearing to the petitioner, confirming the proposals contained in the show cause notice. The impugned order passed by the respondent dated 29.04.2024 is set aside - the matter is remanded to the respondent for fresh consideration - Petition disposed off by way of remand. 1. ISSUES: 1. Whether service of a show cause notice solely by uploading on the GST portal constitutes effective service under the GST Act.2. Whether passing an assessment order without affording an opportunity of personal hearing violates the principles of natural justice.3. Whether failure to respond to a show cause notice served through the GST portal justifies confirmation of the proposals contained therein without exploring alternative modes of service.4. Whether the attachment of the petitioner's bank account should be lifted upon proof of payment of the entire tax liability. 2. RULINGS / HOLDINGS: 1. The Court held that 'sending notice by uploading in portal is a sufficient service,' but the Officer must 'apply his/her mind and explore the possibility of sending notices by way of other modes prescribed in Section 169 of the GST Act' if there is no response, to ensure effective service rather than 'fulfilling the empty formalities.'2. The impugned assessment order was passed 'without affording any opportunity of personal hearing to the petitioner,' thereby violating the principles of natural justice, and is liable to be set aside.3. Confirmation of proposals contained in the show cause notice without exploring alternative modes of service when no response is received is improper and leads to ineffective service, which 'will only pave way for multiplicity of litigations.'4. Upon production of proof of payment of the entire tax liability, the respondent is directed to issue appropriate directions to the petitioner's banker to 'de-freeze the petitioner's bank account forthwith.' 3. RATIONALE: The Court applied the statutory framework under Section 169 of the GST Act, which prescribes multiple valid modes of service of notices. The Court emphasized that mere uploading of notices on the GST portal, although a valid mode, may not constitute effective service if the taxpayer remains unaware and unresponsive. The Court underscored the necessity of ensuring effective communication to uphold the principles of natural justice, particularly the right to be heard before passing adverse orders. The decision reflects a doctrinal emphasis on procedural fairness and practical effectiveness in tax administration, cautioning against mechanical compliance that results in 'empty formalities' and subsequent litigation. No dissenting or concurring opinions were noted in the judgment.
TaxTMI 
TaxTMI 
