Notice Uploaded on GST Portal Without Proper Intimation Is Not Valid Service: Madras High Court Remands Matter

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In the case of Tvl. Sakthi Murugan Lorry Service v. Deputy State Tax Officer, decided by the Madras High Court on 8 May 2025, the Court examined the validity of an assessment order passed under the GST regime where the only mode of service of the Show Cause Notice (SCN) was uploading it on the GST portal. The petitioner contended that the notice was never brought to their knowledge, and thus, the principles of natural justice were violated. The case raised important questions about the sufficiency of electronic service of notices under Rule 142 of the CGST Rules and whether mere portal upload without actual communication can constitute valid service. The Court ultimately remanded the matter, reinforcing the need for effective and meaningful notice to the assessee before initiating adverse proceedings.

🏛️ Case Title

M/s. Tvl. Sakthi Murugan Lorry Service v. Deputy State Tax Officer (Madras High Court)

Order dated: 8 May 2025

📌 Case Background

  • The petitioner ( M/s. Tvl. Sakthi Murugan Lorry Service ) challenged an ex-parte assessment order passed by the GST authorities.
  • The core issue was that the Show Cause Notice (SCN) and subsequent assessment order were uploaded only on the GST portal.
  • The petitioner contended that they were unaware of the notice as no separate intimation was given via email, SMS, or any other communication mode.
  • The petitioner came to know about the proceedings only after receiving a recovery notice.

⚖️ Key Legal Issue

Whether mere uploading of notice on the GST portal satisfies the requirement of proper service under the GST law?

🧾 Court Observations

  1. The Madras High Court relied on Rule 142(1) of the CGST Rules, 2017, which mandates electronic issuance of SCN along with proper intimation.
  2. The Court noted that actual knowledge of the proceedings by the assessee is crucial for ensuring principles of natural justice.
  3. Simply uploading the notice on the GST portal without alerting the assessee is not sufficient.
  4. The Revenue failed to establish that the petitioner was aware or had accessed the notice prior to the ex-parte order.

📝 Court’s Decision

  • The Court set aside the assessment order.
  • Directed the department to issue a fresh SCN and provide the assessee a reasonable opportunity to respond.
  • The matter was remanded back to the Assessing Officer for fresh adjudication in accordance with law.

⚖️ Legal Principle Reaffirmed

Service of notice must be effective and enable participation of the assessee; mere technical compliance via portal upload is not enough.

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