GST Notice Communication
MRL Industrial Cooperative Service Society Ltd vs. Revenue [W.P. 3993 of 2025]
Background of the Case
The petitioner, MRL Industrial Cooperative Service Society Ltd., challenged three separate orders passed by the Revenue, under the GST laws. The orders in question were passed under section 73 and section 161 of the TN/CGST Act 2017 which related to FY 2018-19.
Arguments by the Appellant
The petitioner contended that all notices and communications leading to the impugned orders were uploaded only on the GST portal under the “View of additional notices and orders” column. The petitioner was unaware of these notices and, consequently, could not file a reply or appear for a personal hearing. As a result, the orders were passed ex-parte, violating the principles of natural justice.
The petitioner, a cooperative society providing manpower supply services, argued that the ex-parte orders caused severe hardship, as its bank account was attached, making it difficult to disburse salaries to employees.
The petitioner submitted that it was willing to deposit 10% of the disputed tax amount if the court set aside the impugned orders.
Respondent’s Response
The respondent, conceded that if the petitioner deposited 10% of the disputed tax, the court could consider the petitioner’s prayer.
Court Findings and Decision
The Madras High Court ruled in favor of the petitioner, holding that the impugned orders were passed without affording the petitioner an opportunity to be heard. The notices were not served physically but were merely uploaded on the GST portal, which the petitioner was unaware of. The court held that the orders were ex-parte and, therefore, unsustainable in law.
The court emphasized that the principles of natural justice were violated, as the petitioner was not given a fair chance to present its case. The court set aside the impugned orders and remanded the matters back to the Revenue for fresh consideration and the court directed the respondent to defreeze the petitioner’s bank account upon proof of payment of 10% of the disputed tax.
To download official order, Click Here
“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”