Facts of the Case

M/s R K Traders had its GST registration cancelled on 21.10.2022, after which it carried on no further business. Nevertheless, a show cause notice was subsequently uploaded on the GST portal, and an order dated 03.05.2024 was passed under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 against the petitioner by the Assistant Commissioner, State Taxes, Sector-1, Hasanpur, Amroha. The petitioner challenged the order on the ground that, since its registration had already stood cancelled, it had no continuing obligation to monitor the GST portal, and the notice ought to have been served through some other mode.

Issues Involved

  1. Whether a taxpayer whose GST registration has already been cancelled remains obligated to continue checking the GST portal for subsequent notices relating to that registration.
  2. Whether service of a show cause notice solely via portal upload, in such circumstances, satisfies the requirements of natural justice.
  3. What relief follows where such service is found deficient.

Petitioner's Arguments

  • Argued that once registration was cancelled on 21.10.2022, the petitioner was under no continuing obligation to check the GST portal for further notices.
  • Relied on the co-ordinate Bench ruling in M/s Katyal Industries v. State of U.P., which recognised the same principle in near-identical circumstances.

Respondent's Arguments

  • The State's Standing Counsel did not seriously dispute the facts, focusing on the validity of portal-based service generally rather than the specific consequence of prior cancellation.

Court Order / Findings

  • The Court held that once a taxpayer's registration has been cancelled, it is not obligated to continue checking the GST portal, and the mode of service of any subsequent show cause notice must be by alternative means.
  • Agreeing with the principle enunciated in M/s Katyal Industries, held that there was a clear violation of the principles of natural justice, and quashed and set aside the impugned order dated 03.05.2024.
  • Granted the department liberty to issue a proper notice to the petitioner through an appropriate alternate mode of service and to act in accordance with law thereafter.
  • Disposed of the writ petition with the above direction, without costs.

Important Clarification

  • Once GST registration stands cancelled, the taxpayer is relieved of any continuing duty to monitor the common portal, and service of any subsequent show cause notice relating to that period must be effected through alternative means — mere portal upload is insufficient.
  • This is a distinct and important refinement of the general 'portal upload is sufficient service' principle, carving out cancelled-registration cases as requiring a higher standard of actual service.

Sections Involved

  • Section 74, CGST/UPGST Act, 2017 – governs demand and recovery for tax evaded by fraud or suppression, invoked here against an already-cancelled registrant.
  • Section 169, CGST Act, 2017 – prescribes modes of service, including alternative means beyond portal upload.
  • Section 29, CGST Act, 2017 – governs cancellation of registration, the antecedent fact central to this ruling.

Decision – In Favour of

Allowed in favour of the assessee, with the Section 74 order quashed and set aside, subject to the department's liberty to issue a fresh, properly served notice.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case No.: Writ Tax No. 4700 of 2025
  • Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Praveen Kumar Giri, J.
  • Date of Order: 18 September 2025

Link to Download the Order

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