SERVICE OF ORDER IN GST U/S 73

MADRAS HIGH COURT

M/S. C.M.K. TEXTILES REP. BY ITS PROPRIETOR CHINNIAGOUNDER MUTHUKUMAR VERSUS THE ASSISTANT COMMISSIONER TIRUPPUR CENTRAL II CIRCLE TIRUPPUR II, TIRUPPUR

W. P. Nos. 10642 & 10644 of 2025 And W. M. P. Nos. 11984, 11985, 11988 & 11989 of 2025

Dated: - 24-3-2025

Service of order - Challenge to order passed u/s 73 of the Act and summary of the order - impugned orders were merely uploaded in the GST Portal, and were unnoticed by the petitioner - violation of principles of natural justice

HELD THAT:- There is no dispute on the aspect that notices, which culminated in the impugned orders were merely uploaded in the GST portal, which were unnoticed by the petitioner as the petitioner had no occasion to view the Portal then and there, hence, the petitioner could not file reply or appear for the personal hearing. However, the respondent passed the impugned orders without even affording any opportunity of hearing to the petitioner, which are nothing but ex parte orders, as the same suffer from violation of principles of natural justice.

Once the orders are passed in violation of principles of natural justice, this Court cannot impose any condition requiring the petitioner to make any deposit, however, since the petitioner, themselves, have voluntarily come forward to deposit 25% of the disputed tax, this Court is inclined to set aside the impugned orders subject to fulfilment of conditions imposed.

The matters are remanded to the respondent for fresh consideration

2. The challenge in Writ Petition No.10642 of 2025 is to the order passed by the respondent dated 21.08.2024 and consequential order dated 26.08.2024 under Section 73 of the Act and summary of the order under in Form GST – DRC-07 dated 26.08.2024 and to quash the same. So far as W.P.No.10644 of 2025 is concerned, the challenge is to the orders passed by the respondent dated 31.08.2024 and consequential order dated 31.08.2024, order under Ref.No.ZD330824307651J under Section 73 of the Act and summary of the order in Form GST – DRC-07 dated 31.08.2024 and to quash the same as being without jurisdiction.

3. The learned counsel for the petitioner would submit that all the show cause notice/personal hearing notice, which culminated in the impugned orders, were merely uploaded in the GST Portal, hence, the same were unnoticed by the petitioner, therefore, the petitioner could not file reply nor appear for the personal hearing, however, without hearing the petitioner, the impugned orders came to be passed.

3.1 Therefore, the learned counsel would submit that the impugned orders suffer from violation of principles of natural justice and are liable to be aside, as the petitioner has not been heard before passing the impugned order. However, it is stated that the petitioner is also ready and willing to deposit 25% of the disputed tax in any one of the Writ Petition, in the event, this Court is inclined to set aside the impugned orders and remands the matters back to the Authority for fresh consideration, and thus, prays for appropriate orders.

4. The learned Additional Government Pleader (T) for the respondent fairly submitted that since the petitioner has voluntarily come forward to deposit 25% of the disputed tax, the prayer sought for by the petitioner may be considered.

5. Taking into consideration of the submissions made on either side and perusal of record, there is no dispute on the aspect that notices, which culminated in the impugned orders were merely uploaded in the GST portal, which were unnoticed by the petitioner as the petitioner had no occasion to view the Portal then and there, hence, the petitioner could not file reply or appear for the personal hearing. However, the respondent passed the impugned orders without even affording any opportunity of hearing to the petitioner, which are nothing but ex parte orders, as the same suffer from violation of principles of natural justice.

6. Thus, once the orders are passed in violation of principles of natural justice, this Court cannot impose any condition requiring the petitioner to make any deposit, however, since the petitioner, themselves, have voluntarily come forward to deposit 25% of the disputed tax in one of the Writ Petitions, to which, the learned learned Additional Government Pleader (T) is also agreable, this Court is inclined to pass/issue the following orders/directions:-

i) The orders passed by the respondent, which are impugned in W.P.No.10642 of 2025, viz., orders dated 21.08.2024 and consequential order dated 26.08.2024 under Section 73 of the Act and summary of the order under in Form GST – DRC-07 dated 26.08.2024 and the orders impugned in W.P.No.10644 of 2025, viz., the orders dated 31.08.2024 and consequential order dated 31.08.2024 under Section 73 of the Act and summary of the order in Form GST – DRC-07 dated 31.08.2024 are set aside.

ii) Consequently, the matters are remanded to the respondent for fresh consideration.

iii) The petitioner is granted liberty to deposit 25% of the disputed tax in respect of W.P.No.10642 of 2025, which the petitioner themselves have voluntarily came forward to make such payment within a period of two weeks from the date of receipt of a copy of this order.

iv) Thereafter, the petitioner is directed to file a reply along with supportive documents within a period of two weeks. and

v) Thereupon, the respondent is directed to consider the reply and shall issue a clear 14 days notice affording an opportunity of personal hearing to the petitioner and shall decide the matter in accordance with law.