K. Chandra Vs State Tax Officer (Madras High Court)
The Madras High Court, in the case of K. Chandra Vs. State Tax Officer, set aside an assessment order demanding in tax, interest, and penalty, ruling that service of a show cause notice (SCN) solely via the GST portal is insufficient when a taxpayer’s GST registration has already been cancelled.
The petitioner’s registration was cancelled on October 29, 2020. The subsequent SCN was uploaded only on the portal on November 13, 2024. The petitioner argued she was unaware of the service and thus could not participate in the proceedings, leading to an ex-parte final assessment order on January 23, 2025.
The High Court held that once registration is cancelled, the taxpayer has no occasion to access the portal. In such circumstances, the proper officer is obligated to serve the SCN through registered post to ensure it reaches the assessee. Since this was not done, the Court found a clear breach of the principles of natural justice.
The Court relied on its own precedent in Tvl. Apollo Medicals Vs. The State Tax Officer (FAC) (W.P.(MD) No.25073 of 2025), where it previously held that portal upload alone may not always constitute sufficient service.
