Proper Service of Notice Crucial for GST Assessment Validity: Madras High Court

In a recent and impactful judgment, the Madras High Court in M. Vimalraj Vs Union of India W.P.(MD) No. 2649 of 2025, dated 30.01.2025] underscored the importance of due process in the issuance and service of notices under GST law.

Background of the Case

The petitioner, M. Vimalraj, challenged a GST assessment order dated 03.11.2023 relating to the assessment year 2018-19. The main contention was that the order was passed without proper service of notice, thus violating the statutory requirements of the Central Goods and Services Tax Act, 2017.

Key Legal Provision: Section 169(1) of CGST Act

Section 169(1) lays down the prescribed modes of service of notice, which include:

• Clause (a): Hand delivery or registered/speed post
• Clause (b): Email or digital communication
• Clause (c): Uploading on the common GST portal

The Court noted that in the present case, none of these mandatory service modes had been properly followed by the department.

Court’s Ruling

The High Court relied on its own precedent from a batch of writ petitions (W.P.(MD) No. 26481 of 2024, dated 06.01.2025), where it was held that strict compliance with Section 169(1) is essential for a valid assessment.

Accordingly, the Court:

• Set aside the assessment order dated 03.11.2023
• Directed the petitioner to submit a reply to the show cause notice within two weeks of receiving the order
• Ordered the respondent to provide a proper hearing and pass a fresh order on merits and in accordance with law
• Directed that any bank attachment resulting from the invalid order shall be lifted

Significance of the Judgment

This decision reinforces a crucial procedural safeguard: assessment orders without valid service of notice are legally unsustainable. It upholds the principles of natural justice and fair hearing, ensuring that taxpayers are given a reasonable and lawful opportunity to respond before being assessed or penalized.

Conclusion

The Madras High Court\'s ruling in M. Vimalraj is a reminder to tax authorities to strictly adhere to procedural norms under GST law. Any deviation from statutory modes of notice service under Section 169(1) will render the entire assessment null and void, safeguarding the rights of the assessee.

Prepared by: Dr Muhammed Mustafa C T

BRQ Associates - Tax & Legal Research Team

Mob: 96 33 18 18 98