GST notice service and natural justice: impugned assessment set aside and remanded subject to 25% deposit

Violation of principles of natural justice was found where an assessment order was passed without affording personal hearing and where notices uploaded on the GST portal were not brought to the taxpayer's attention; consequence: the impugned assessment was set aside and remanded for fresh consideration. The court held that service solely by portal, without exploring prescribed alternative modes when there is no response, is ineffective and officers must attempt other modes such as registered post with acknowledgement; consequence: assessing authority directed to re-serve notices effectively and reconsider the matter. Remand conditioned on payment of 25% of disputed tax within four weeks, with annulment effective upon payment.

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Issues: Whether the impugned assessment order passed on 31.12.2024 is vitiated by lack of opportunity of personal hearing and ineffective service by uploading notices on the GST portal, and whether the matter should be remanded for fresh consideration subject to conditions agreed between the parties.

Analysis: The show cause notice and reminders were uploaded on the GST portal but the petitioner claims lack of awareness and non-receipt of original notice; the respondent admitted that no opportunity of personal hearing was afforded prior to passing the impugned order. Section 169(1) of the Central Goods and Services Tax Act, 2017 prescribes alternative modes of service; where there is no response to portal notices, the issuing officer ought to have considered other prescribed modes (preferably RPAD) to effectuate service before passing an ex parte assessment. The petitioner has offered to pay 25% of the disputed tax and to file a reply if given opportunity to be heard; the respondent accepted the remand subject to that payment.

Conclusion: The impugned order dated 31.12.2024 is set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner pays 25% of the disputed tax within four weeks from receipt of this order; on payment the petitioner shall file reply/objection within three weeks and the respondent shall issue a 14 days clear notice fixing date of personal hearing and thereafter decide the matter on merits in accordance with law.

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