Service of GST showcause notices by portal must be supplemented by alternative service modes; failure to do so led to remand with deposit condition.

Uploading a showcause notice on the GST portal does not alone satisfy the obligation of effective service where the taxpayer did not receive or respond to it; tax officers must explore alternative service modes, including registered post with acknowledgement, and afford opportunity for personal hearing. An assessment passed without such effective service and hearing was set aside and remitted for fresh consideration. The remand is subject to a condition precedent: the taxpayer must pay 25% of the disputed tax within four weeks, and the setting aside takes effect from the date of that payment.

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Issues: Whether the impugned assessment order passed without providing an opportunity of personal hearing and based solely on notices uploaded on the GST portal is to be set aside and the matter remitted for fresh consideration subject to conditions proposed by the petitioner.

Analysis: The Court examined the manner of service of show cause notices uploaded on the GST common portal and the absence of personal hearing prior to passing the impugned order. The Court observed that although uploading on the portal is a recognised mode of service, when there is no response from the taxpayer the assessing officer must apply mind and explore other modes of service prescribed under Section 169(1) of the GST Act (for example by RPAD) to ensure effective service. The Court noted the admitted fact that no opportunity of personal hearing was afforded to the petitioner and that the petitioner had expressed willingness to pay 25% of the disputed tax to facilitate fresh consideration.

Conclusion: The impugned order dated 31.01.2024 is set aside and the matter is remanded to the respondent for fresh consideration on the condition that the petitioner pays 25% of the disputed tax within four weeks; the petitioner shall file reply/objections within three weeks of payment and the respondent shall issue a 14 days clear notice fixing personal hearing and thereafter decide the matter on merits.

Ratio Decidendi: Where notices are served by electronic portal and there is no response from the taxpayer, the assessing officer must explore alternate modes of service under Section 169(1) to secure effective service and afford personal hearing before confirming proposals in a show cause notice.

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