Invalid GST notice service and denial of personal hearing vitiated ex parte assessment and recovery proceedings.

Service of GST notices only through the portal was held insufficient where the taxpayer's registration had already been cancelled, because effective communication is required and the person was no longer obliged to monitor the portal. The ex parte assessment and recovery proceedings were therefore vitiated for want of valid service. The court also held that, where an adverse assessment was contemplated, the statutory requirement of personal hearing and the rule of audi alteram partem had to be observed; absence of an effective hearing rendered the order unsustainable. The assessment order and recovery proceedings were quashed, with liberty to proceed afresh after proper notice and hearing.

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Issues: (i) whether the assessment and recovery proceedings were vitiated for want of valid service of notice when the petitioner's GST registration had been cancelled; and (ii) whether the ex parte assessment order could stand in the absence of opportunity of personal hearing under the GST law.

Issue (i): whether the assessment and recovery proceedings were vitiated for want of valid service of notice when the petitioner's GST registration had been cancelled.

Analysis: Service by merely uploading notices on the GST portal was held insufficient in the facts of the case, since the petitioner was no longer required to monitor the portal after cancellation of registration. Valid service under the GST framework requires effective communication of notice through a permissible mode that actually informs the assessee. The record showed that the proceedings were taken ex parte without proper service.

Conclusion: The service of notice was held invalid and the ex parte proceedings were unsustainable.

Issue (ii): whether the ex parte assessment order could stand in the absence of opportunity of personal hearing under the GST law.

Analysis: The statutory mandate of personal hearing applies where an adverse order is contemplated, and it embodies the rule of audi alteram partem. Since the petitioner was not afforded an effective opportunity of hearing before the adverse assessment, the order suffered from breach of natural justice.

Conclusion: The assessment order could not be sustained for want of opportunity of personal hearing.

Final Conclusion: The assessment order and recovery proceedings were quashed, and the department was left free to proceed afresh after notice and hearing in accordance with law.

Ratio Decidendi: In GST adjudication, an ex parte order based only on portal-based notice to a person whose registration has been cancelled, without effective service and personal hearing where an adverse decision is contemplated, is vitiated for breach of natural justice.

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