Madras High Court Sets Aside GST Assessment for Ineffective Portal-Only Notice Service

The Madras High Court in Health @ Home Vs Deputy State Tax Officer examined the validity of a GST assessment order and consequential bank attachment where all statutory notices were merely uploaded on the GST portal after the assessee’s registration had already been cancelled. Holding that such service, though technically permissible, was ineffective in the specific facts, the Court quashed the assessment and remanded the matter with conditions.

This order is a significant reminder that officers must not treat mere portal uploads as a mechanical formality when there is no response from the assessee, especially where registration stands cancelled. The Court insisted on exploring alternative modes of service under Section 169 of the Goods and Services Tax Act, 2017 to ensure a real, effective opportunity of hearing.

Background of the Writ Petition

Orders and Reliefs Challenged

The assessee filed a writ petition challenging:

  • The order dated 09.01.2024 passed by the first respondent;
  • The consequential assessment order dated 21.08.2024; and
  • The bank attachment order dated 28.01.2025 issued by the second respondent.

In addition to quashing these orders, the assessee sought a direction to the department to:

  1. Furnish complete details as reflected in the auto-populated GSTR-2A; and
  2. Proceed thereafter strictly in accordance with the Goods and Services Tax Act, 2017.

Cancellation of GST Registration and Issuance of Notices

According to the assessee:

  • Its GST registration had been cancelled on 19.12.2018.
  • After this cancellation, the first respondent issued a show cause notice and subsequent reminder notices.
  • All these communications were only uploaded on the GST portal.

The assessee asserted that, since the registration was already cancelled, it did not regularly access or monitor the GST portal and was therefore wholly unaware of any show cause notice or reminder notices issued in relation to the assessment proceedings.

Because no reply was filed (due to lack of knowledge of the notices), the assessing authority treated the matter as uncontested and confirmed the proposals in the show cause notice, culminating in the assessment order dated 21.08.2024.

Bank Attachment and Discovery of Assessment

Subsequently, the second respondent initiated recovery by:

  • Passing a bank attachment order dated 28.01.2025, freezing the assessee’s bank account.

The assessee came to know of the assessment order only when Karur Vysya Bank informed it about the attachment of its bank account in pursuance of the impugned assessment order.