GST Assessment Upheld Where Notices Were Sent to Registered Email and Mobile: Allahabad High Court Ruling

The Allahabad High Court in Sarthak Earthmovers And Builders Vs State of U.P examined whether a GST assessment order could be challenged on the ground of violation of principles of natural justice when the assessee failed to respond to notices duly issued through the statutory electronic mode. The Court declined to interfere, holding that once notices are served as per Section 169 of the U.P. GST Act on the registered contact details, the assessee cannot later plead ignorance, especially when two distinct opportunities for reply and personal hearing were provided but not availed.

This judgment provides important clarity for both the GST department and assessees on the legal consequences of:

  • Providing an accountant’s email ID and mobile number at the time of registration, and
  • Failing to monitor communications issued through the GST common portal and registered contact details.

Background of the Dispute

Assessment Order and Impugned Demand

The assessee challenged an assessment order dated 23.12.2025 passed by the Assistant Commissioner, State Tax, Lucknow. Under this order, tax, interest, and penalty aggregating to ₹29,84,975 were imposed for the financial year 2021-22.

The assessee approached the High Court under writ jurisdiction, seeking to set aside the assessment primarily on the ground of alleged breach of natural justice and non-compliance with Section 75(4) of the U.P. GST Act.

Core Grievances of the Assessee

The assessee’s challenge was built on two principal arguments:

  1. No Personal Hearing Granted:
    The assessee argued that Section 75(4) is mandatory and that the assessment could not have been finalized without affording a proper opportunity of hearing. According to the assessee, no real opportunity was provided before completing the assessment for FY 2021-22.

  2. Ignorance of Notices Due to Accountant’s Contact Details:
    The assessee contended that he never came to know of the show cause notice and subsequent reminder because the registered email ID and mobile number recorded with the GST department belonged to his accountant. It was submitted that he therefore could not participate in the proceedings or file any reply.

The assessee also pointed to the fact that although the second hearing date was fixed as 18.11.2025, the assessment order was ultimately passed on 23.12.2025, a date that was not itself fixed for personal hearing, and claimed this rendered the order invalid.

Stand of the State Tax Department

Issuance of Show Cause Notice Through Common Portal

In response, the department filed a short counter affidavit describing the sequence of events and the mode of communication adopted:

  • A show cause notice was issued on 20.09.2025 via the common GST portal.
  • As per system protocol, simultaneous communications were automatically transmitted to the registered email ID and mobile number furnished at the time of GST registration.
  • The notice:
    • Fixed 20.10.2025 as the last date for filing written reply, and
    • Fixed 27.10.2025 as the date for personal hearing.

Despite this, the assessee did not file any reply and did not attend on the scheduled date for personal hearing.

Reminder Notice and Second Opportunity

When the assessee did not respond to the first notice, the department provided a second opportunity:

  • A reminder notice was issued on 17.11.2025, again through the common portal.
  • Fresh dates were fixed:
    • 14.11.2025 for filing reply, and
    • 18.11.2025 for personal hearing.

Even on this second occasion, the assessee neither filed any reply nor remained present for the hearing. In view of this persistent non-compliance, the Assessing Officer proceeded to finalize the assessment and passed the impugned order on 23.12.2025.

The High Court focused on three main questions:

  1. Whether there was adequate compliance with the requirement of service of notice under Section 169 of the U.P. GST Act.