Pioneer Products Vs State Tax Officer (Madras High Court)
Madras High Court has intervened in a Goods and Services Tax (GST) assessment dispute, ruling that tax authorities must send at least one reminder notice via Registered Post with Acknowledgement Due (RPAD) before issuing an ex-parte order. The judgment came in the case of Pioneer Products Vs State Tax Officer, addressing concerns over adherence to natural justice principles in the digital age.
The petitioner, Pioneer Products, challenged an assessment order dated January 9, 2025, issued by the first respondent. The core of the petitioner’s argument was a lack of awareness regarding critical notices. According to the petitioner’s counsel, Mr. J. Madhusuthanan, both DRC 01 (show cause notice) and subsequent personal hearing notices were uploaded exclusively to the “Additional Notices and Orders” section of the GST Portal. This specific placement, rather than the more prominent “Notices and Orders” tab, allegedly prevented the petitioner from becoming aware of the proceedings, leading to their inability to file a reply or attend personal hearings. Consequently, an ex-parte order was passed without their participation. The petitioner contended that this constituted a clear violation of natural justice.
The petitioner expressed a willingness to deposit 25% of the disputed tax amount, provided the impugned order was set aside and the matter remanded for fresh consideration. This offer aimed to facilitate a re-evaluation of their case.
