Madras High Court Quashes GST Order Citing Logical Impossibility in Service of Notice Dates

In a significant ruling concerning procedural fairness and the validity of service of notice under the Goods and Services Tax (GST) regime, the Madras High Court has set aside an assessment order where the recorded date of service predated the actual issuance of the show cause notice. The judgment was delivered in the case of Sri Sakthimurugan Crusher Vs Commercial Tax Officer.

The Court scrutinized the timeline of events and found that the acknowledgment of receipt indicated the assessee received the notice two days before it was purportedly signed and issued by the tax authority. Consequently, the High Court remanded the matter for fresh adjudication, emphasizing the necessity of effective opportunities for personal hearings.

Background of the Dispute

The writ petition was filed by the assessee challenging the impugned assessment order dated 13.02.2025. The primary contention raised by the assessee was a lack of awareness regarding the proceedings. The counsel for the assessee submitted that all communications and notices were uploaded solely on the GST common portal. Due to being unaware of these digital uploads, the assessee failed to submit a reply within the stipulated timeline.