Tvl. Kvs Company vs. The Commercial Tax Officer/State Tax Officer

Held

The Court held that while uploading notices on the GST portal can be considered sufficient service, the respondent, despite receiving no response to the show cause notices, should have explored other modes of service prescribed under Section 169 of the GST Act, such as Registered Post with Acknowledgement Due (RPAD), to ensure effective service. Merely passing an ex parte order by fulfilling formalities without ensuring effective service leads to multiplicity of litigation. The Court found a lack of effective opportunities for the petitioner to receive notices and orders. Given that the entire tax amount had already been recovered and the lack of opportunity, the Court set aside the impugned order dated April 16, 2024. The matter was remanded to the respondent for fresh consideration, with directions for the petitioner to file their reply within three weeks and for the respondent to issue a 14-day clear notice for personal hearing before passing a fresh order on merits.

Facts

The petitioner, Tvl. KVS Company, filed a writ petition challenging an assessment order dated April 16, 2024, passed by the Commercial Tax Officer/State Tax Officer, Bodinayakanur. The petitioner contended that all notices and communications were uploaded on the GST common portal, but they were unaware of these notices and thus failed to file a reply within the stipulated time. Consequently, the impugned order was passed without providing an opportunity for a personal hearing. The petitioner also stated that the entire tax amount had already been recovered. The respondent conceded that no personal hearing was provided before passing the order.

Key Issues

1. Whether the assessment order passed by the respondent is illegal and liable to be quashed for want of proper opportunity of personal hearing to the petitioner, under Article 226 of the Constitution of India? The petitioner argued that the assessment order was passed without affording them a proper opportunity of personal hearing, as they were unaware of the notices uploaded on the GST portal. They relied on the fact that the entire tax amount had already been recovered and sought an opportunity to present their case. The respondent, while admitting that no personal hearing was provided, stated that notices were uploaded on the GST portal and requested the matter to be remitted back.