Uploading SCN on GST Portal Alone Is Not Effective Service: Madras HC

Uploading SCN on GST Portal Alone Is Not Effective Service: Madras HC

The applicant, Unique India Construction, received a show cause notice in Form DRC 01 on 07.09.2023 on the GST portal. This show cause notice was not served in physical form to the petitioner. Due to this, the petitioner was not aware of this notice and could not reply to the notice. As a result, the GST officer passed the ex parte order. The petitioner challenged this order by filing a petition.

Also Read
GST: HC Says Back Office with Cost Plus Model Not Agency, Allows Export Refund

The petitioner argued that they were unaware of the SCN as it was only uploaded to the portal and was not served physically. Additionally, the order was passed without a hearing, which violated the principles of natural justice. The petitioner also added that if given a chance, they were willing to deposit 25% of the disputed tax if the matter was remanded.

Madras High Court’s Order

The Madras High Court observed that only uploading notices on the portal is legally valid, but not always effective if there is no response. The Court therefore set aside the assessment order dated 30.12.2023, passed under the GST Act, because the Show Cause Notice dated 07.09.2023 was uploaded on the GST portal without ensuring effective service for a personal hearing.
The matter was sent back to the tax officer (respondent) for fresh consideration.
The petitioner is required to pay 25% of the disputed tax, which they were earlier willing to pay, within 2 weeks of receiving this order.
The petitioner must file a reply to the show cause notice along with supporting documents within two weeks.
The officer must issue a fresh 14-day notice for a personal hearing and pass a new order.

The writ petition is now disposed.

Read the judgment for more information.