Proper Service of Notice Crucial for GST Assessment Validity: Madras HC

The Madras High Court, in the case of M.Vimalraj Vs Union of India, addressed the critical issue of notice service in Goods and Services Tax (GST) assessment proceedings. The petitioner challenged an assessment order dated 03.11.2023 for the assessment year 2018-19, arguing that it was issued without proper service of notice. The court, referencing a precedent set in a batch of similar writ petitions, emphasized the necessity of adhering to the prescribed modes of notice service as outlined in Section 169(1) of the Central Goods and Services Tax Act, 2017. These modes include clauses (a), (b), and (c) of the aforementioned section, which detail specific methods for serving notices to assessees. The court determined that the assessment order in question failed to comply with these procedural requirements. Consequently, the High Court ruled that an assessment order issued without proper service of notice is invalid.

In its decision, the court set aside the impugned assessment order, directing the petitioner to submit a reply to the show cause notice within two weeks of receiving a copy of the order. The respondent was instructed to provide the petitioner with an opportunity for a hearing and subsequently pass a fresh order based on the merits of the case and in accordance with the law. Additionally, any bank attachments made as a result of the invalidated assessment order were ordered to be lifted. The court’s ruling underscores the importance of strict adherence to procedural safeguards in tax assessments, particularly regarding the service of notices. By emphasizing the necessity of proper notice, the judgment aims to ensure fairness and transparency in GST proceedings, protecting the rights of assessees. The writ petition was allowed, and connected miscellaneous petitions were closed, with no order as to costs.