Tvl. Sri Balaji Traders Vs DCIT (Madras High Court)
The Madras High Court, in the case of Tvl. Sri Balaji Traders vs DCIT, addressed the validity of an ex-parte GST assessment order and the sufficiency of service of notice via the GST common portal, particularly when notices are uploaded in an “unusual” tab. The petitioner, Tvl. Sri Balaji Traders, challenged the assessment order (DRC-07 dated August 24, 2024) and the subsequent bank attachment notice (DRC-13 dated February 5, 2025), arguing that they had not been heard, rendering the order a violation of natural justice.
The Petitioner’s Grievance and Mode of Service
The petitioner’s counsel argued that the initial show cause notice (DRC-01 dated May 22, 2024) and subsequent reminders were uploaded on the GST Portal under the “View Additional Notices/Orders” column, instead of the regular “View Notices/Orders” column. The petitioner, described as an illiterate person not well-accustomed to computer operations, claimed to have been unaware of these communications. Discovery of the notices only occurred after the bank account was attached. The petitioner contended that merely uploading notices to an unusual or secondary tab on the portal should not constitute sufficient service, especially when the assessee repeatedly fails to respond. They asserted that the respondent authority, upon receiving no reply, should have switched to a physical mode of service, such as Registered Post with Acknowledgement Due (RPAD), as provided under Section 169(1)(b) of the Central Goods and Services Tax (CGST) Act, 2017.
