The Madras High Court set aside a GST assessment order on the ground that the show cause notice (SCN) was not validly served as per Section 169 of the CGST Act. The Court held that mere uploading of SCN and reminders on the GST portal, without exploring alternative statutory modes of service and without granting personal hearing, does not constitute proper service. Consequently, the assessment order was vitiated and required fresh adjudication.
Case Title:
Enfive Systems Private Limited v. The Commissioner of Commercial Taxes & Anr. – Hon’ble Madras High Court (W.P. (MD) No. 36252 of 2025) decided on 18.12.2025
Issue
Whether service of SCN only through GST portal upload, without resorting to other modes prescribed under Section 169, and without granting personal hearing, constitutes valid service under GST law.
Held
- Section 169 prescribes multiple modes of service, and the proper officer is required to explore alternative modes when effective service is not ensured.
- Mere uploading of SCN on the GST portal cannot be treated as sufficient service in all circumstances.
- Failure to provide an opportunity of personal hearing further violates principles of natural justice.
- The assessment order was therefore vitiated.
Decision
- Assessment order set aside.
- Matter remanded for fresh adjudication.
- Department directed to grant proper opportunity of hearing.
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Petitioner directed to deposit part of the disputed tax as a condition for fresh proceedings.