Madras High Court Sets Aside GST Assessment Order Over Improper Service of SCN

Case Name & Details

Tvl. Evershine Industries v. Assistant Commissioner[2025] (Madras High Court)

• Court: High Court of Madras
• Coram: Justice Krishnan Ramasamy
• W.P. No.: 15781 of 2025
• W.M.P. Nos.: 17837 & 17838 of 2025
• Date of Order: 02 June 2025
• Relevant Sections: Section 169 read with Section 73 of the CGST Act, 2017 / TNGST Act, 2017

In a significant ruling, the Madras High Court emphasized that mere uploading of a Show Cause Notice (SCN) on the GST portal, without serving it through other prescribed modes, is not sufficient service under the law.

In this case, the assessee had voluntarily cancelled its GST registration in 2022. Despite this, the department issued SCNs which were only uploaded in the "View Additional Notices and Orders" tab on the GST portal. No copies were sent by registered post, email, or any other valid mode prescribed under Section 169 of the CGST Act.

An ex‑parte assessment order was subsequently passed without affording any opportunity of personal hearing to the assessee.

Key Observations of the High Court

• Uploading alone is not enough: Although uploading on the portal is a valid mode of service, the officer must also explore other prescribed modes (RPAD, email, etc.) if there is no response from the taxpayer.
• Violation of natural justice: Passing an ex‑parte order in such circumstances amounts to a clear violation of principles of natural justice.
• Communication post cancellation: Once registration is voluntarily cancelled, all communications must be sent to the email ID provided by the assessee. Failure to do so is not acceptable.

Court's Directions

The impugned assessment order dated 12.04.2024 was set aside.

Matter remanded to the department with these directions:

• The assessee shall pay 10% of the disputed tax amount within four weeks.
• A fresh reply/objection to be filed within three weeks thereafter.
• The officer shall issue a clear 14‑day notice for personal hearing and then pass a fresh order in accordance with law.

Practical Takeaways

• For Taxpayers: Regularly monitor the GST portal and keep contact details updated. Ensure that notices are duly received; if not, raise the issue promptly.
• For Department/Practitioners: Explore all valid modes of service under Section 169 to ensure effective communication. Ex‑parte orders without proper service waste time and lead to avoidable litigation.

Your Views Matter!

What do you think about this judgment? Have you faced similar issues with the service of notices?

Share your thoughts, insights, or experiences in the comments below. Let's learn from each other!

The author is a Chartered Accountant specializing in GST, taxation and litigation support. He is also a speaker at ICAI and various Tax Bar Associations, author of multiple articles on GST case laws and compliance strategies & passionate about simplifying complex tax issues for professionals and businesses.