Service Of Notices & Orders Through Common Portal Is A Valid Mode Of Service U/S 169 Of GST Act: Madras High Court

The bench rejected the argument that the GST portal is not a “designated computer resource of the assessee” and hence as per Sec. 13 (2) (a) (ii) of the Information Technology Act, receipt occurs only when the communication is retrieved.

“Service by making it available in the common portal is a valid mode of service in terms of Section 169 of the GST Act. Service is complete when it enters the common portal i.e., when it is made available in the common portal,” stated the bench of Justice Mohammed Shaffiq.

The bench further opined that the common portal is a designated computer resource for both Department as well as taxable person inasmuch as the taxable person is given a unique login ID and password to enable them to have access to the portal. The common portal would thus constitute a “designated computer resource” for the taxable person as well.

In this case, the assessee/Petitioner was engaged in providing works contract service primarily to Central and State Government.

During the course of inspection, discrepancies were noticed relating to short payments of taxes for the period 2017-18 to 2022-23. An intimation in Form DRC-01A for the period 2018-19 was issued which was uploaded in GST Common Portal.

This was followed by a show cause notice in DRC-01 which was uploaded in the Common Portal for the period 2021-22. The contentions/allegations in DRC-01 were similar to that raised in DRC-01A. Thereafter, impugned order for the period 2021-22 came to be passed.

The case of the assessee was that intimation in DRC-01A, show cause notice in DRC-01 and order of adjudication in DRC-07, were uploaded in the GST Common Portal, assessee was not aware of the same.

Therefore, assessee was thus unable to participate in the adjudication/ assessment proceedings. The assessee has challenged the order of assessment, on the premise that the service of notice / order is improper and invalid.

The assessee submitted that as per Sections 73 and 74 of the CGST Act, the proper officer shall serve a notice before determination of tax. Service is complete only when the same is received by the intended entity. Making available in the common portal cannot be treated as service of notice / order, though it may constitute issuance of notice/order under the GST Act.

The department submitted that placed reliance on Rule 142(1) of GST Rules, to submit that what is contemplated is only issuance of summary of show cause notice in Form DRC-01 and not the detailed notice which has to be issued otherwise, thus service of detailed notice by making it available in the common portal is invalid, is contrary to the express provisions of Section 169 of the Act.

The bench opined that if the electronic record is sent to a computer resource other than the designated computer resource, receipt occurs when the electronic record is retrieved by the addressee. If the taxable person has not designated a computer resource, receipt would occur when the electronic record enters the computer resource of the addressee.

Having found common portal to be a “designated computer resource” of the taxable person as well, receipt would occur when it enters the common portal i.e., when it is made available in the common portal, in terms of clause (a) to sub section (2) to section 13 of the Act, added the bench.

The assessee submitted that in similar matters the Court has remanded the matter back subject to payment of 25% of disputed taxes.

In view of the above, the bench set aside the impugned order and directed the assessee to submit objections within four weeks.

Case Title: M/s. Poomika Infra Developers v. State Tax Officer

Citation: 2025 LiveLaw (Mad) 149

Case Number: W.P. Nos.33562

Counsel for Petitioner/ Assessee: G. Natarajan

Counsel for Respondent/ Department: Hajanazarudeen

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