Facts of the Case

Satendra Singh, holding GSTIN 10BHQPS0169G1ZB, challenged an appellate order dated 05.09.2024 which dismissed his appeal against cancellation of his GST registration on the ground of limitation. Through an amendment petition, the petitioner brought on record the additional fact — never specifically denied by the department — that no physical copy of the show cause notice dated 08.07.2022 or the subsequent cancellation order was ever served on him, and all communications had been uploaded only on the GST portal, of which he had no knowledge due to a prolonged medical condition, resulting in ex-parte cancellation.

Issues Involved

  1. Whether an appellate dismissal on limitation should stand where the underlying show cause notice and cancellation order were never physically served, and the taxpayer establishes lack of effective notice due to genuine incapacity.
  2. What evidentiary weight should be given to specific factual averments in an amendment petition that the department fails to controvert despite opportunity.
  3. What relief is appropriate where both the cancellation order and the appellate dismissal are found to suffer from a natural justice violation.

Petitioner's Arguments

  • Submitted that no physical copy of the show cause notice or the cancellation order was ever served, only uploaded on the portal, of which the petitioner had no knowledge owing to his prolonged medical condition.
  • Argued this supported the plea that the petitioner had no effective notice and could not be faulted for non-response or delay, relying on the Patna High Court's own ruling in M/s Lord Vishnu Construction Pvt Ltd v. Union of India.

Respondent's Arguments

  • Respondent No.5, despite filing a counter affidavit and being granted further opportunity, did not specifically deny the averments regarding non-service and the petitioner's medical incapacity made in the amendment petition.

Court Order / Findings

  • The Court noted that the specific averments in paragraphs 5 and 6 of the amendment petition — regarding non-service and the petitioner's medical condition — had not been controverted despite opportunity being given to the department.
  • Following its earlier decision in M/s Lord Vishnu Construction Pvt Ltd v. Union of India, held that the impugned order cancelling registration suffered from violation of the statutory procedure and the principles of natural justice.
  • Set aside both the appellate order and the order cancelling registration.
  • Directed the petitioner to submit his reply to the show cause notice within three weeks, whereafter the Deputy Commissioner of State Tax, Siwan shall grant a hearing and pass an appropriate order, with the entire exercise to be completed within four months.

Important Clarification

  • Where a taxpayer specifically pleads that a show cause notice or cancellation order was never physically served and was only uploaded on the GST portal, and the department fails to specifically rebut this despite opportunity, courts will treat the resulting cancellation as vitiated by a natural justice violation, notwithstanding any subsequent limitation-based appellate dismissal.
  • A genuine, well-documented medical incapacity preventing portal monitoring is treated as a valid explanation negating any inference of deliberate non-response by the taxpayer.

Sections Involved

  • Section 29, CGST/Bihar GST Act, 2017 – governs cancellation of GST registration.
  • Section 169, CGST Act, 2017 – prescribes valid modes of service of notices, orders and communications.
  • Section 107, CGST Act, 2017 – the appellate provision under which the petitioner's appeal was dismissed on limitation.

Decision – In Favour of

Allowed in favour of the assessee, with both the cancellation order and the appellate dismissal set aside, and the matter remanded for a fresh reply and hearing within a fixed timeline.

Case Details

  • Court: High Court of Judicature at Patna
  • Case No.: Civil Writ Jurisdiction Case No.19540 of 2024
  • Coram: Hon'ble Mr. Justice Rajeev Ranjan Prasad and Hon'ble Mr. Justice Ajit Kumar
  • Date of Order: 05 August 2025

Link to Download the Order

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