Madras High Court Ruling: Tvl. Enfive Systems Private Limited Vs Commissioner of Commercial Taxes

The Hon'ble Madras High Court has delivered a significant judgment concerning the validity of GST assessment orders passed exclusively based on notices uploaded to the common portal, specifically when the assessee fails to respond. In the case of Tvl. Enfive Systems Private Limited Vs Commissioner of Commercial Taxes, the Court emphasized that while digital service is permissible, it does not absolve the Revenue Department of its obligation to ensure effective service and principles of natural justice, particularly the right to a personal hearing.

Case Background and Facts

The writ petition was filed by the assessee challenging an assessment order dated 21.03.2024. The primary grievance of the assessee was that the entire adjudication process was conducted ex-parte. The Revenue Department had uploaded the Show Cause Notice (SCN) and subsequent reminders solely on the GST common portal.

The assessee contended that they were unaware of these digital uploads and, consequently, could not file a reply within the statutory timeline. Due to this lack of response, the Adjudicating Authority proceeded to pass the impugned order without affording the assessee an opportunity for a personal hearing. The assessee argued that the absence of physical service or alternative modes of communication resulted in a denial of natural justice.