High Court Directs Appellate Adjudication Without Limitation Bar

High Court Directs Appellate Adjudication Without Limitation Bar for Assessment Order Uploaded Solely on Portal

Issue

Whether a writ petition challenging a GST assessment order passed without physical service and alleged denial of personal hearing should be entertained directly under Article 226, or remanded to the statutory Appellate Authority with condonation of limitation.

Facts

Period in Dispute: The assessment proceedings pertain to Financial Year 2019-20.
Assessment & Upload: The respondent passed an assessment order and consequential demand order against the petitioner.
Petitioner’s Grievance: The petitioner filed a writ petition contending that the assessment order was uploaded solely on the online portal without physical service and that no opportunity of personal hearing was granted, resulting in a violation of principles of natural justice.
Revenue’s Defense: The Revenue submitted that the Show Cause Notice (SCN) and personal hearing notices were duly issued as per portal procedures.
Alternative Remedy Availability: The statutory appellate remedy under Section 107 of the CGST/TNGST Act was available to the petitioner to challenge the assessment order on all factual and legal grounds.

Decision

Alternative Appellate Forum Preferred: Taking note of the statutory remedy under Section 107, the High Court declined to adjudicate the merits directly and disposed of the writ petition with liberty to the petitioner to approach the Appellate Authority [Para 5].
Time-Bound Limitation Protection: The High Court directed that if an appeal is filed within two weeks from the date of receipt of the order, the Appellate Authority must entertain it on merits without raising any objection regarding the limitation period [Para 5].
Fixed Timeframe for Disposal: The Appellate Authority was instructed to adjudicate and dispose of the appeal in accordance with the law within a period of three months [Para 5].

Key Takeaways

Preservation of Appellate Remedy: High Courts prefer relegating taxpayers to the statutory appellate route under Section 107 while granting limitation protection for delays caused by portal communication disputes.
Protection Against Limitation: Filing an appeal within the court-mandated window (e.g., two weeks) shields the taxpayer from summary dismissal on limitation grounds.
Portal Service Disputes Are Appealable: Challenges regarding whether portal notice uploads satisfied procedural natural justice are best evaluated before the Appellate Authority when alternative remedies exist.

HIGH COURT OF MADRAS

Oasys Marketing Agency

Deputy State Tax Officer

VIVEK KUMAR SINGH, J.

W. P.(MD) No. 11512 of 2025 and W.M.P.(MD) Nos. 8505 & 8507 of 2025

APRIL 24, 2025

S. Krishna Kumar for the Petitioner. J.K. Jayaselan, Government Adv. for the Respondent.

ORDER

1. This Writ Petition is filed challenging the assessment order passed by the first respondent, dated 22.04.2024 and the consequential order dated 29.08.2024 passed by the second respondent for the assessment year 2019-2020.

2. With the consent of both sides, this Writ Petition is taken up for final disposal at the admission stage itself.

3. The learned counsel for the petitioner submits that the impugned assessment order has been passed by the respondent only through the online portal and that there has been no physical service of the said order on the petitioner, either by registered post or by any other mode. As a result, the petitioner was not afforded an opportunity of personal hearing, which amounts to a violation of the principles of natural justice. Aggrieved by the said order, the petitioner has filed the present Writ Petition before this Court.

4. Mr. J.K. Jayaselan, learned Government Advocate appearing for the respondent submits that the impugned assessment order has been passed after issuing show cause notice to the petitioner followed by personal hearing notices, dated 08.07.2024, 16.07.2024 and 29.07.2024 and therefore, there is no need to interfere with the impugned order. He further submits that against the impugned order, the petitioner has an appeal remedy before the Appellate Deputy Commissioner (ST) GST Appeal, Tiruchirappalli, under Section 107 of the TNGST Act, 2017. However, instead of invoking the appeal remedy, the petitioner has directly approached this Court.

5. Recording the submission made by the learned Government Advocate that the petitioner is having an appeal remedy before the Deputy Commissioner (ST) (GST), Trichy, under Section 107 of the GST Act, 2017, this writ petition is disposed of, with liberty to the petitioner to approach the appellate authority and raise all the grounds raised in this writ petition in the appeal. In the event, if any appeal is filed within a period of two weeks from the date of receipt of a copy of this order, the same shall be entertained by the appellate authority without reference to the period of limitation and disposed of in accordance with law, within a period of three months thereafter. There shall be no order as to costs. Consequently, connected Miscellaneous Petitions are closed.