2026 (2) TMI 384 - HC - GST

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 ... Service by uploading on GST portal - service under Section 169(1) of the GST Act - requirement of effective service and personal hearing - obligation of tax officer to explore alternative modes of service (including RPAD) - remand subject to deposit as condition precedent - HELD THAT:- In the case on hand, it is evident that the show cause notice was uploaded on the GST Portal Tab. According to the petitioner, he was not aware of the issuance of the said show cause notice issued through the GST Portal and the original of the said show cause notice was not furnished to them. 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. 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. Therefore, this Court finds that there is a lack of opportunities being provided to serve the notices/orders etc., effectively to the petitioner. This Court is inclined to set aside the impugned order dated 31.01.2024 passed by the respondent. The impugned order dated 31.01.2024 is set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner shall pay 25% of the disputed tax amount to the respondent within a period of four weeks from the date of receipt of a copy of this order. The setting aside of the impugned order will take effect from the date of payment of the said amount With the above directions, this writ petition is disposed of. 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.