Tvl. Fashion Falls Fabrics Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
Madras High Court has intervened in a Goods and Services Tax (GST) assessment dispute, setting aside an ex-parte order issued against Tvl. Fashion Falls Fabrics. The Court emphasized that while notice through the common portal is valid, tax authorities should use alternative communication methods, such as Registered Post with Acknowledgment Due (RPAD), when there is no response to initial online notices.
The petitioner, Tvl. Fashion Falls Fabrics, challenged a demand order (DRC-07) dated February 17, 2025, for the assessment year 2020-2021. The petitioner claimed to have become aware of this order only upon receiving a recovery intimation on March 24, 2025.
According to the respondent, the Assistant Commissioner (ST) (FAC), a summary of the show cause notice (DRC-01) was issued on November 25, 2024, through the GST common portal, followed by three reminders. Subsequently, three personal hearings were also granted via the web portal before the ex-parte order (DRC-07) was issued.
The petitioner’s counsel admitted that no reply was sent, nor did anyone appear for the personal hearings. The reason provided was the petitioner’s limited knowledge of operating the GST portal, leading them to engage a consultant who allegedly failed to follow up on the communications.
