Order to Be Set Aside Due to Lack of Physical Service of Reminder Notices for Personal Hearing to Assessee | HC

Case Details: Tvl. Jayam Sai Concrete Works v. State Tax Officer Investigation Gr-I - [2025] 170 taxmann.com 563 (Madras)

Judiciary and Counsel Details

• J. Sathya Narayana Prasad, J.
• Ms R. Hemalatha, for the Petitioner.
• T.N.C. Kaushik, Addl. Govt. Pleader (Tax), for the Respondent.

Facts of the Case

The petitioner was a wholesaler/distributor of cement products. The department conducted audit and found certain discrepancies. The reminder notices for personal hearing were only uploaded on GST portal without physical service. Thereafter, the department issued assessment order since the petitioner failed to appear for hearing and it filed writ petition against the assessment order.

High Court Held

The Honorable High Court noted that the mere uploading of notices on GST portal without proper service by tender/RPAD would render the assessee unaware of proceedings. In the instant case, the petitioner was unaware of initiated proceedings and was unable to participate in the adjudication proceedings. Therefore, it was held that the order was liable to be set aside and the Court directed the department to verify payment claims and allow objections subject to deposit of balance 25% tax.

List of Cases Reviewed

• M/s. K. Balakrishnan, Balu Cables v. O/o. the Assistant Commissioner of GST & Central Excise in W.P. (MD)No.11924 of 2024 dated 10.06.2024 – [Para 7] followed.