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 2023-2024. The impugned order was passed due to the alleged fraudulent availment of Input Tax Credit (ITC) from a non-existent taxpayer. The petitioner contended that while the show cause notice and personal hearing notices were uploaded on the web portal, there was no effective physical service or proper intimation, leading to their failure to notice and respond. Consequently, the proceedings were passed ex parte.

Held

The Court held that while the notices were uploaded on the web portal, the petitioner's contention regarding the lack of effective physical service or proper intimation warranted consideration. Recognizing that the petitioner failed to notice the notices and file a reply, the Court decided to grant one more opportunity. This opportunity was conditional upon the petitioner paying 25% of the disputed tax amount within four weeks. Upon compliance, the impugned ex-parte order dated 10.10.2025 would be set aside, and the matter would be remitted back to the first respondent for fresh consideration. The petitioner would be required to appear, file a reply, and produce documentary evidence. The first respondent would then pass fresh orders expeditiously. The Court also directed that the freezing of the petitioner's bank account shall stand lifted. No costs were awarded.

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 due to lack of effective service of the show cause notice and personal hearing notices. (Mixed question of law and fact, concerning principles of natural justice and procedural fairness under GST law). Petitioner's arguments: The petitioner argued that the notices were only uploaded on the web portal, and there was no effective physical service or proper intimation. This lack of proper communication prevented them from responding to the show cause notice and attending the personal hearing, thus violating the principles of natural justice. Revenue's arguments: The judgment records that the show cause notice and personal hearing notices were uploaded on the web portal, and the petitioner did not avail the opportunity. No further specific arguments were recorded for the revenue.