Patna HC: Service Only on ‘Additional Notices’ on GST Portal is Invalid

Patna HC: Service Only on ‘Additional Notices’ on GST Portal Is Invalid

The petitioner challenged the ex parte assessment order dated 06.02.2025 passed under Section 73(9) of the BGST Act, 2017, along with the consequential demand in Form DRC-07 for FY 2020–21, raising a liability of Rs. 7,58,105.36 including tax, interest, and penalty. The petitioner contended that the order was unreasoned and passed without proper service of any show cause notice or reminders by valid modes under Section 169 of the BGST Act. It was specifically argued that the notice of personal hearing was uploaded only under the “Additional Notices and Orders” tab of the GST Portal and not communicated by any other prescribed mode, thereby denying the petitioner a reasonable opportunity of hearing.

The respondents maintained that uploading the notice on the GST portal was sufficient under the law, but did not specifically deny the petitioner’s claim that no other mode of service was adopted.

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Issue Raised: Whether merely uploading the notice under the “Additional Notices and Orders” tab of the GST portal, without proof of service through a valid mode under Section 169 BGST Act, constitutes effective service, and whether the resulting ex parte order violated the mandatory right to hearing under Section 75(4).

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HC’s Ruling: The High Court allowed the writ petition and set aside the ex-parte assessment order. It was observed that the State did not contest the petitioner’s statement that the notice was never served except by being placed under the “Additional Notices” tab. The Court held that such action did not satisfy the statutory requirement of service under Section 169 and deprived the petitioner of an effective opportunity of hearing as mandated under Section 75(4).

Therefore, the Court quashed the assessment and directed the petitioner to appear before the Joint Commissioner, State Tax, or the competent authority on or before 13.08.2025. The authority was instructed to provide the petitioner an opportunity to file a reply, grant a personal hearing, and thereafter pass a detailed and reasoned order within four months from the date of the order.

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