Mere Uploading of GST Notices Under Section 169(1)(d) does not Constitute Valid Service [High Court]

Petitioners were GST assessees who were served with assessment orders passed ex parte under the CGST/TNGST Acts.

Petitioner claimed that the Service via the GST portal was ineffective, and notices were not reasonably traceable due to improper categorisation. Thus, in terms of Section 169(2), the legal fiction of deemed service cannot apply to notices only uploaded online.

The court also held that mere uploading of notices under Section 169(1)(d) does not constitute valid service if the assessee is unaware.

169. Service of notice in certain circumstances:

(1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely:

(a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on behalf of the taxable person or to a person regularly employed by him in connection with the business, or to any adult member of family residing with the taxable person; or

(b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at his last known place of business or residence; or

(c) by sending a communication to his email address provided at the time of registration or as amended from time to time; or

(d) by making it available on the common portal, or

(e) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or

(f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board of the office of the concerned officer or authority who or which passed such decision or order or issued such summons or notice.

The court cited that the objective of service is to ensure participation and defence, not mere technical compliance.

Section 169 of the GST Act makes it clear that the service may be effected by virtue of 5 different modes, each one which is alternative to one another and the service shall be effected by any one of the modes as prescribed therein. The court said that Section 169(1)(d) must be supplemented with other modes of service if there is no response.

The Court found a violation of principles of natural justice due to a lack of Proper communication and Opportunity for a personal hearing

As a result, it directed that all impugned orders be quashed.