Facts of the Case

The petitioner, M/S Dwivedi Traders, Unnao, had its GST registration cancelled on 06.10.2020, after which it carried on no further business. Despite the cancellation, the Commercial Tax Officer, Unnao, uploaded a show cause notice on the GST portal and subsequently passed an order dated 28.11.2023 under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 against the petitioner. The petitioner challenged the order before the Allahabad High Court's Lucknow Bench, contending that once its registration stood cancelled, it had no continuing obligation to monitor the GST portal for notices, and that any notice ought to have been served through alternative means to be effective.

Issues Involved

  1. Whether a taxpayer whose GST registration has already been cancelled is obligated to check the GST portal for subsequent notices.
  2. Whether service of a show cause notice solely by uploading it on the portal, without any alternative mode of communication, satisfies the principles of natural justice for a de-registered taxpayer.
  3. Whether the resulting Section 73 order deserved to be quashed for violation of natural justice.

Petitioner's Arguments

  • Once GST registration is cancelled, the taxpayer is not obligated to continue checking the GST portal, since access and engagement with the portal are ordinarily tied to an active registration.
  • The mode of service of any show cause notice on a de-registered taxpayer has to be by alternative means, not merely by uploading it on the portal, relying on the coordinate bench ruling in M/s Katyal Industries v. State of U.P.
  • Since no effective notice was served, the resulting Section 73 order was passed in violation of the principles of natural justice.

Respondent's Arguments

  • The State's counsel did not present any specific rebuttal distinguishing the Katyal Industries precedent from the petitioner's facts before the Court.

Court Order / Findings

  • The Court agreed that a taxpayer is not obligated to check the GST portal once its registration has been cancelled and that alternative means of service become necessary in such cases.
  • Endorsing the principle enunciated by the coordinate bench in M/s Katyal Industries v. State of U.P., the Court found a clear violation of natural justice in relying solely on portal upload for a de-registered taxpayer.
  • The impugned order dated 28.11.2023 was quashed and set aside on the ground of violation of natural justice, with liberty granted to the Department to issue a proper notice and proceed afresh in accordance with law.

Important Clarification

  • A taxpayer whose GST registration is already cancelled cannot be presumed to monitor the GST portal, and the Department must use alternative modes of communication, such as post, email, or physical service, to validly serve notices on such persons.
  • Failure to use an alternative mode of service in these circumstances amounts to a violation of natural justice sufficient to vitiate the resulting demand order.
  • This principle offers cancelled/de-registered taxpayers specific protection distinct from the broader 'additional notices tab' line of cases applicable to active registrants.

Sections Involved

  • Section 73, Uttar Pradesh GST Act, 2017 – determination of tax not paid for reasons other than fraud, under which the impugned order was passed.
  • Section 29, CGST/UPGST Act, 2017 – governs cancellation of GST registration, relevant to the petitioner's already-cancelled status.
  • Section 169, CGST Act, 2017 – prescribes permissible modes of service of notices and orders.

Decision – In Favour of

The decision is in favour of the assessee. The impugned Section 73 order was quashed and set aside for improper service, with liberty to the Department to issue a fresh, properly served notice.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1462 of 2025; M/S Dwivedi Traders, Unnao vs State of U.P. and Others; Coram: Justice Shekhar B. Saraf and Justice Rajeev Bharti; Decided on 10.12.2025.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.