Proper Service of Notice under GST- Legal Aspect

The service of notice is a foundational element in any quasi-judicial or adjudication proceeding under the Goods and Services Tax (GST) law. If the notice is not properly served, any order passed pursuant to such notice can be legally challenged and declared void on the grounds of violation of natural justice.

This article explores the legal framework, modes of service, judicial precedents, and practical considerations surrounding the proper service of notice under GST.

Relevant Legal Provisions

As per Section 169 of CGST Act, Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely:—

Modes of Service under Section 169(1)

(a) Personally delivered

(b) By registered post or speed post or courier with acknowledgement due

(c) By sending a communication to his e-mail address

(d) By making it available on the common portal; or

(e) By publication in a newspaper

(f) If none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence

Deemed Date of Service – Section 169(2)—the communication shall be deemed to have been served:

• If sent by post – on the date of delivery.

• If emailed or uploaded on the portal – on the date of email/portal upload.

• If affixed/published – on the date it is affixed or published.

Judicial Pronouncements on Service of Notice

• In case of Baghel Trading Co. V/s State of U.P. [2023] 65 TAXLOK.COM 001 (Allahabad), petitioner submitted that, The word "Communicated" used in section 107 of the GST Act in contrast to the word "served" used in Section 169 of the GST Act. Therefore, the order may have been served by making it available on the portal as provided under Section 169 of the GST Act, but the same will not amount to communication of the order as the order can be said to be communicated only when the person concerned comes to know about the same. The ALLAHABAD HIGH COURT has adjourned the matter.

• In case of Abitha Timber Traders [2024] 69 TAXLOK.COM 245 (Madras), Though Section 169(d) of TNGST Act 2017, enables the respondent to issue notice through the common portal, other modes are also made available to the respondent under Section 169 of the TNGST Act 2017, however petitioner was not an educated person and he is not acquainted in following the notices uploaded through the common portal. This writ petition is allowed by setting aside the impugned order passed by the respondent and the matter is remitted back to the respondent for fresh consideration.

• In the sase of ENS Enterprises [2024] 68 TAXLOK.COM 241 (Madras) it was held that the Department shall workout the possibilities of issuing these notices in the respective regional languages and also by SMS and registered post. So that, the uneducated traders can also respond to these notices to some extent, otherwise, these notices will be an empty formality and will not serve any purpose for which it has been issued. The object of any Government is to promote the trade and not to curtail the same.

• In case of Pee bee enterprises [2020] 27 TAXLOK.COM 029 (Kerala), it was held that, the service of an order through the web portal is one of the methods of service statutorily prescribed under Section 169(1)(c) and (d) of CGST Act, the petitioner cannot deny the fact of receipt of the order, the assessment orders would therefore have to be held valid and the remedy of the petitioner against the said assessment order can only be through an appeal.

These rulings show that mere formality of service is not enough; effective communication is essential for due process.

Indian courts have consistently upheld the importance of proper and valid service. Below are some key rulings:

Key Takeaways:

• Compliance with Section 169 is mandatory for valid service of notice.

• Mere procedural formality is not enough; effective communication to the taxpayer is necessary.

• Improper or no service can render the proceedings invalid and unenforceable.

• Courts have consistently held that denial of the opportunity to be heard due to lack of proper service is a violation of natural justice.

Consequences of Improper Service—improper service of notice may result in:

• Violation of natural justice (audi alteram partem).

• Proceedings being declared invalid or quashed by appellate or judicial forums.

• Denial of opportunity to represent, leading to unjust demand orders.

• Loss of time and litigation cost for the department and the taxpayer

Suggested Practices for Taxpayers:

• Regularly check GST portal notifications and registered email.

• Keep address and contact details updated in GST registration.

• Maintain a record of receipt of all notices and orders for defense.

Conclusion

Proper service of notice under GST is not a mere procedural formality it is a constitutional requirement of fair hearing. Section 169 of the CGST Act lays down clear guidelines on how a notice should be served. Tax authorities must follow due process strictly, and taxpayers must be vigilant in checking communications. Any breach in service may not only vitiate the proceedings but may also lead to unnecessary litigation.

In essence, effective service of notice is the cornerstone of a legally sustainable GST proceeding.