GST Assessment Order Set Aside for Lack of Proper Service and Opportunity to Respond; Matter Remanded on payment of 25% of disputed tax 

Issue: Whether a GST assessment order is valid when the show cause notice and the order itself were not properly served on the assessee, preventing them from participating in the proceedings.

Facts:

• The revenue authorities conducted a surprise inspection of the assessee’s premises and found discrepancies in their GST returns and e-way bills.
• A notice in Form DRC-01A and a show cause notice in Form DRC-01 were issued to the assessee.
• The assessee claimed that these notices and the subsequent assessment order were only uploaded on the GST portal and not served through other means like registered post.
• The assessee was unable to access the portal and participate in the proceedings, leading to an ex-parte assessment order.

Decision:

• The court acknowledged that the assessee was not properly served with the notices and did not have an opportunity to respond.
• The assessee expressed willingness to pay 25% of the disputed tax and sought a chance to present their objections with supporting documents.
• The court set aside the assessment order and remanded the matter back to the adjudicating authority.

Key Takeaways:

• This case highlights the importance of proper service of notices and orders in GST proceedings.
• Merely uploading documents on the GST portal may not be considered sufficient service, especially if it prevents the assessee from participating in the proceedings.
• The decision emphasizes the principles of natural justice and procedural fairness, ensuring that assessees are given a proper opportunity to respond and defend themselves before an assessment order is passed.
• The court’s decision to provide the assessee with another opportunity to respond while also requiring a partial deposit of the disputed tax demonstrates a balanced approach to resolving tax disputes.