Assessment Order liable to be set aside when Notice is not served physically

Last updated: 02 February 2024

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Quick Summary

The Madras High Court has ruled that an assessment order is invalid if the notice was not physically served to the assessee, even if it was uploaded online. The court emphasised the importance of physical service and granting a proper opportunity to respond before passing any order. Consequently, the assessment order was set aside and the matter was sent back for reconsideration.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of Jak Communications (P.) Ltd. v. Deputy Commercial Tax Officer [W.P. No. 35453 of 2023 dated December 19, 2023] disposed the writ petition thereby setting aside the Assessment Order passed by the Revenue Department in cases where the Notices were not served physically to the Assessee, even though the Notices were uploaded on the web portal.

Citation :
W.P. No. 35453 of 2023 dated December 19, 2023

The Hon'ble Madras High Court in the case of Jak Communications (P.) Ltd. v. Deputy Commercial Tax Officer [W.P. No. 35453 of 2023 dated December 19, 2023] disposed the writ petition thereby setting aside the Assessment Order passed by the Revenue Department in cases where the Notices were not served physically to the Assessee, even though the Notices were uploaded on the web portal.

Facts

Jak Communications (P.) Ltd. ("the Petitioner") filed a writ petition before the Hon'ble High Court against assessment order dated May 25, 2023 ("the Impugned Order") passed by the Revenue Department ("the Respondent") interalia, contending that, the Impugned Order was passed in violation of principles of natural justice as the Petitioner was unaware of the Notice issued due to Notices not being served physically. Also, it was contended that, neither opportunity for filing reply nor opportunity for personal hearing was granted to the Petitioner.

Issue

Whether Assessment Order is liable to be set aside when Notice is not served physically?

Held

The Hon'ble Madras High Court in the case of W.P. No. 35453 of 2023 held as under:

Noted that, the Notices and the Impugned Order were uploaded in the web portal in the "View Additional Notices and Orders" column and the same were not physically served to the Petitioner, due to which the Petitioner was unaware of the said notice.
Opined that, the aforesaid reason provided by the Petitioner appears to be genuine.
Further Opined that, no order can be passed without granting sufficient opportunity to the Petitioner. Hence, the Impugned Order is liable to be set aside.
Held that, the Impugned Order is set aside and matter be remitted back to the Respondent for adjudication.
Directed that, the Petitioner shall file the reply and the Respondent shall dispose the matter after granting sufficient opportunity to the Petitioner.

FAQ :

The main issue was whether an assessment order could be set aside if the notice was not physically served to the assessee, despite being uploaded on a web portal.

The Madras High Court decided that an assessment order is liable to be set aside if the notice was not physically served, as this violates the principles of natural justice.

The assessment order was set aside because the petitioner was unaware of the notice as it was only uploaded to a web portal and not physically served, and they were not given an opportunity to reply or be heard.

The assessment order has been set aside, and the matter has been sent back to the Revenue Department. The petitioner will file a reply, and the department will reconsider the case after providing a sufficient opportunity to the petitioner.