GST Assessment Quashed as Portal-Only Notices Were Held Ineffective: Madras HC

Health @ Home Vs Deputy State Tax Officer (Madras High Court)

GST Assessment Set Aside as Portal-Only Notices Were Held Ineffective in the Facts of the Case: Madras High Court

The writ petition challenged the order dated 09.01.2024, the consequential assessment order dated 21.08.2024, and sought a direction to the respondents to furnish details in the auto-populated GSTR-2A and thereafter proceed in accordance with the provisions of the Goods and Services Tax Act, 2017.

The petitioner submitted that its GST registration had been cancelled on 19.12.2018. Subsequently, the respondent issued a show cause notice and reminder notices by uploading them on the GST portal. Since the registration had already been cancelled, the petitioner stated that it had no occasion to monitor the GST portal and was therefore unaware of these notices. As no reply was filed, the respondent confirmed the proposals contained in the show cause notice and passed the assessment order dated 21.08.2024. Thereafter, the second respondent issued a bank attachment order dated 28.01.2025. According to the petitioner, it became aware of the assessment order only after receiving information from Karur Vysya Bank regarding the attachment of its bank account.

The petitioner contended that the assessment order was passed in violation of the principles of natural justice since no opportunity of hearing had been provided before the order was passed. The petitioner also expressed willingness to deposit 10% of the disputed tax if the matter was remanded for fresh consideration and requested lifting of the bank attachment subject to such payment.