GST Assessment Order Set Aside for Improper Service of Notice; Assessee Allowed to Reply
Issue: Whether a GST assessment order is valid when it is issued without proper service of notice as prescribed under Section 169(1) of the CGST Act, 2017.
Facts:
- An assessment order was issued for the financial year 2018-19.
- The assessee challenged the order, claiming that it was issued without proper service of notice.
Decision:
- The court referred to the case of Udumalpet Sarvodaya Sangham vs. Authority, which held that an assessee is entitled to service of notice through the prescribed modes under Section 169(1)(a), (b), and (c) of the CGST Act.
- Following this precedent, the court set aside the assessment order as it was issued without adhering to the prescribed modes of service.
- The court directed the petitioner (assessee) to submit a reply to the show cause notice within two weeks from the date of receiving the court’s order.
Key Takeaways:
- This case reiterates the importance of proper service of notice in GST proceedings.
- Assessment orders issued without following the prescribed modes of service under Section 169(1) are invalid.
- Assessees have the right to receive notices through the specified methods to ensure awareness of the proceedings and a fair opportunity to respond.
- This decision upholds the principles of natural justice and procedural fairness in GST assessments.
HIGH COURT OF MADRAS
M.Vimalraj
v.
Union of India
K. Kumaresh Babu, J.
W.P.(MD) No.2649 of 2025
W.M.P.(MD) Nos.1868, 1869 and 1870 of 2025
W.M.P.(MD) Nos.1868, 1869 and 1870 of 2025
JANUARY 30, 2025
F.X. Eugene and K.Ganesamoorthi, Advs. for the Petitioner. R.Suresh Kumar, Additional Government Pleader for the Respondent.
ORDER
1. Heard Mr.F.X.Eugene, learned counsel for the petitioner and Mr.R.Suresh Kumar, learned Additional Government Pleader for the respondents.
2. This writ petition is filed challenging the assessment order dated 03.11.2023 for the assessment year 2018-19.
3. In view of the order passed by this Court in a batch of writ petitions in W.P.(MD) No.26481 of 2024 etc., batch dated 06.01.2025, wherein it has been held that the assessee is entitled to service of notice in the modes described under clauses (a), (b), and (c) of Section 169(1) of the Central Goods and Services Tax Act, 2017 and since the said order applies to the present case, the impugned order dated 03.11.2023 for the assessment year 2018-19 is set aside. The petitioner shall submit its reply to the show cause notice within a period of two weeks from the date of receipt of a copy of this order. Thereafter, the respondent shall provide an opportunity of hearing to the petitioner, as envisaged, and pass orders on merits and in accordance with law. In view of this order, the bank attachment, if any, made shall also stand raised.
4. In fine, this Writ Petition is allowed. There shall be no order as to costs. Consequently, connected Miscellaneous Petitions are closed.