GST Authorities to Serve at Least Another Notice Through Other Modes If Reply to Notice Sent on Email Not Received | HC

Case Details: Sakthi Steel Trading v. Assistant Commissioner (ST) - [2024] 159 taxmann.com 233 (Madras)

Judiciary and Counsel Details

• • C. Saravanan, J.
  • D. Vijayakumar for the Petitioner.
  • V. Prasath Kiran, Govt. Adv. for the Respondent.

Facts of the Case

In the present case, the petitioner filed writ petition against the assessment order passed by the GST department and contended that it was unaware of the notice since it was sent by the department on the email and it was not checked by the petitioner. It was also argued that the petitioner didn’t get opportunity to give reply.

High Court Held

The Honorable High Court noted that although there is advancement in the technology and Section 169(1)(c) has statutorily recognized communication through e-mail, all men of commerce from the business community particularly small traders, small service provider and small manufacturers may not be ready to receive and respond. Unless, they have a dedicated team of persons handling their e-mails accounts, they may not even notice receipt of any notice, notification, and summons in their e-mail.

The Court further noted that if, notice sent to designated/registered email ID’s as is contemplated in Section 169(1)(c) is not responded by an assessee, it would be incumbent on the part of the department to serve atleast another notice once through any of the other modes of service of notice prescribed under Section 169(1) so as to ensure there communication and there is no violation of principles of natural justice.

Therefore, the Court held that under these circumstances, the impugned order was set aside and the case was remitted back to pass a fresh order on merits in accordance with law preferably within a period of 45 days from date of receipt of this order. The Court also directed the petitioner to a reply to the notice positively within a period of 30 days from date of receipt of this order.

List of Cases Referred to

• • Thvya Traders (Dhivya Traders) v. Appellate Assistant Commissioner (Commercial Tax), (2010) 33 v. 803 (Mad) (para 4)
  • New Grace Automech Products (P.) Ltd. v. State Tax Officer [2023] 148 taxmann.com 9/97 GST 76/(2023) 72 G.S.T.L. 37/(2023) 4 Centax 14 (Mad) (para 8)
  • Jony Electricity India Engineering (P.) Ltd. v. Appellate Authority, Joint Commissioner of GST & Central Excise [2023] 149 taxmann.com 474/98 GST 451/2023 (75) G.S.T.L. 344/(2023) 5 centax 283 (Mad) (para 8)
  • Pandidorai Sethupathi Raja v. Superintendent of Central Tax [2022] 145 taxmann.com 632//[2023] 96 GST 100/2023 (70) G.S.T.L. 164/(2022) 1 Centax 289 (Mad.) (para 8).