Summary:
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The key issue before the Madras High Court was whether mere service of GST notices through the portal without acknowledgment or response from the taxpayer is sufficient under GST law. The Court held that effective communication is essential, and officers must use alternate modes like registered post with acknowledgement due if the taxpayer remains unresponsive.

Facts:

• The Petitioner challenged the GST assessment order passed by the State tax officer on the following grounds

• • All notices and communications were uploaded only under the “View Additional Notices and Orders” tab of the GST common portal. The Petitioner was unaware of the said notices and, therefore, could not file a reply or avail the opportunity for a personal hearing
  • Accordingly, the assessment order was passed ex parte, i.e., without hearing the petitioner

• Whether the service of notice solely through the GST portal is sufficient where the taxpayer has not responded or acknowledged the same?
• Whether the principles of natural justice were violated due to the absence of a personal hearing before passing the assessment order?­

Discussion and Ruling:

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Hon’ble Madras High Court set aside the assessment order and remanded the matter to the respondent for fresh consideration on the following basis:

• While service of notices through the GST portal is a valid mode under Section 169 of the Central Goods and Services Tax Act, 2017 (‘CGST Act’), such service must also be effective. If a taxpayer has not responded, it is incumbent on the officer to take additional steps to ensure proper service
• The practice of passing an ex parte order without providing an effective opportunity of personal hearing by merely fulfilling procedural formalities would only lead to multiplicity of litigations
• When there is no response from the taxpayer to the notice sent through a particular mode, the officer who issued notices should strictly explore the possibilities of sending notices through some other mode as prescribed in Section 169(1) of the CGST Act, preferably by way of Registered Post with Acknowledgement Due (‘RPAD’) which would ultimately achieve the object of the CGST Act
• There is a lack of opportunity being provided to serve the notices/orders etc., effectively to the petitioner

This is an important ruling that highlights the need for proper and effective communication of GST notices to taxpayers, ensuring they get a fair opportunity before any action is taken by the adjudication authorities.