Assessment Quashed as DRC-01 Was Only Uploaded on Portal | HC

Case Details: VST and Sons vs. Assistant Commissioner, Chennai - [2025] 180 taxmann.com 167 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• Ms M. Sangeetha for the Petitioner.
• Ms Amirtha Poonkodi Dinakaran, Govt. Adv. for the Respondent.

Facts of the Case

The petitioner challenged the assessment order issued under Form GST DRC-07 for the period April 2020 to March 2021, contending that the preceding show cause notice in Form DRC-01 had been uploaded solely on the GST portal and had gone unnoticed. In support, an electronic credit ledger (ECL) extract was submitted, indicating recovery of the disputed tax and it was argued that no proper personal service or opportunity of hearing had been provided. The petitioner prayed for the assessment order to be linked with DRC-01 and an opportunity to submit a reply. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that uploading the DRC-01 notice solely on the portal, without personal service, amounted to a denial of a reasonable opportunity to be heard. The Court directed that the electronic credit ledger entries to be verified whether they corresponded to the tax confirmed by the impugned order. If not, the petitioner was required to deposit 25% of the disputed tax in cash. The Court further directed that the assessment order be treated as an addendum to the DRC-01 notice, and the petitioner be allowed to file a detailed reply. The matter was remitted to the jurisdictional officer for fresh adjudication.