GST Notices Must Be Sent by Registered Post If Ignored on Portal: HC

The Madras High Court recently gave a clear message on how GST notices should be sent to taxpayers. The court said that it is not enough to just upload a notice on the GST portal. The department should send the notice through Registered Post with Acknowledgement Due (RPAD) if there is no reply from the taxpayer.

A GST-registered commission agent, Tvl. Sri Mathuru Eswarar Traders who works in cotton ginning filed a case which resulted in this ruling. The business owner challenged a tax assessment order dated 30 December 2024, which confirmed the tax demand of more than Rs. 9.67 lakh along with interest and penalty.

The court pointed out that the tax department had only uploaded the Show Cause Notice (SCN) on the GST portal. The department went ahead with the assessment and passed the order after getting no one response to the notice. The court said that the notice was not served properly, and no personal hearing was given before confirming the demand.

As per the court if someone just uploads a notice on the GST portal without confirming if the person has received it does not count as proper service under Section 169 of the CGST Act. It was noted that if no response is received the officer must try other methods such as sending the notice through registered post making the taxpayer clearly aware about the notice.

The court has cancelled the tax order and sent the matter back to the tax officer for a fresh review. The taxpayer was asked to pay 25% of the disputed tax amount within two weeks and submit a reply with all important documents.

The court also instructed the tax officer to give a 14-day notice and offer a personal hearing before making any final decision. It further directed that the business owner’s frozen bank account should be unfrozen after proof of the partial tax payment is submitted.