Tvl.Vel Associates vs. The Assistant Commissioner (St)

Facts

The petitioner, Tvl.Vel Associates, represented by its proprietor, filed a writ petition challenging an ex-parte order in Form GST DRC-07, dated 10.10.2025, passed by the Assistant Commissioner (ST), Tirunelveli Junction Assessment Circle, for the financial year 2024-2025. The order was passed due to the petitioner's alleged failure to respond to a show cause notice and personal hearing notices, which were uploaded on the web portal. The petitioner contended that while the notices were uploaded, there was no effective physical service or proper intimation, leading to their failure to notice and reply, resulting in the ex-parte order. The petitioner sought to quash the order and requested a fresh order after being heard.

Held

The Court held that one more opportunity could be granted to the petitioner to present their case. The reasoning was based on the petitioner's submission that while notices were uploaded on the web portal, there was a lack of effective physical service or proper intimation, which led to their failure to respond. The Court found merit in granting a further chance to the petitioner to be heard. The ratio decidendi is that even if statutory notices are uploaded on a web portal, the principles of natural justice may necessitate a re-examination if the assessee demonstrates a lack of effective notice and a plausible defense. The operative directions included the petitioner paying 25% of the disputed tax amount within four weeks, upon which the impugned order would be set aside, and the matter remitted back to the first respondent for fresh consideration. The petitioner was directed to appear, file a reply, and produce evidence. The first respondent was directed to pass fresh orders expeditiously. The freezing of the petitioner's bank account was ordered to be lifted.

Key Issues

1. Whether the ex-parte order dated 10.10.2025, passed by the first respondent, is violative of the principles of natural justice, considering the petitioner's claim of not receiving effective notice of the show cause and personal hearing notices. This issue turns on the interpretation and application of principles of natural justice and the adequacy of notice served through the GST web portal. Petitioner's argument: The petitioner argued that the show cause notice and personal hearing notices were uploaded on the web portal, but there was no effective physical service or proper intimation. Consequently, the petitioner failed to notice these communications and file a reply, leading to the impugned ex-parte proceedings. Revenue's argument: The judgment records no specific argument from the revenue or state regarding the petitioner's contention on notice service. However, the context implies the revenue relied on the fact that notices were uploaded on the portal, which is the prescribed method of communication.