High Court: Email-Only GST Notice Is Not Proper Service, Relief Granted

The petitioner, filed a petition to challenge an order dated July 18, 2023, by the assistant commissioner. The learned counsel for the petitioner submitted that the petitioner received the notice via email of the petitioner. Since the notice was sent via e-mail and not in physical form, the company failed to notice it, as it is a small business and could not reply to the order on time. The respondent passed the final order without giving a chance to be heard, which violated natural justice.

The Petitioner’s learned counsel also submitted that the Petitioner was willing to deposit 25% of the disputed tax amount to the respondent.

High Court Order

The Madras High Court observed that notice was issued through the email ID, but was not received by the petitioner and in this case, the petitioner was not given a chance to present themself. The Court ruled in favour of Roop Rajat Exports and set aside the tax order, and directed the following:

• The company must pay 25% of the disputed tax within 4 weeks.
• The company must submit a reply/objection with required documents within 3 weeks.
• The tax authority must issue a 14-day notice for a personal hearing and pass a fresh order only after hearing the petitioner.