Facts of the Case

The petitioner, M/S Build Tech, challenged an order dated 28.02.2025 passed under Section 73 of the UP/CGST Act, 2017 for the tax period January 2020 to March 2020. The show cause notice had been issued when the petitioner still held GST registration, but by the time the order was passed, the petitioner's registration had already been cancelled. As a result, the petitioner never received notice of the hearing and could not appear before the order was passed. The petitioner sought quashing of the order and a restraint on its enforcement before the Allahabad High Court.

Issues Involved

  1. Whether an order under Section 73 is sustainable where the hearing notice was communicated only through the GST portal after the petitioner's registration had been cancelled.
  2. What mode of service is required once an assessee's registration stands cancelled, given the assessee is no longer obligated to monitor the portal.

Petitioner's Arguments

  • The show cause notice was issued while registration was active, but the order itself was passed after registration had already been cancelled, without any notice of the hearing reaching the petitioner.
  • Once registration is cancelled, an assessee cannot be expected to keep checking the GST portal, so service ought to have been effected through an alternative mode such as email or registered post.

Respondent's Arguments

  • The record showed the notice was uploaded on the GST portal in the ordinary course, though the Department did not seriously dispute that the petitioner's registration stood cancelled by the time of the order.

Court Order / Findings

  • The Division Bench held that once a taxpayer's GST registration has been cancelled, the department cannot rely solely on portal upload for service of hearing notice and must serve the notice by email or registered post, since the assessee is no longer obligated to check the portal.
  • Finding this a violation of natural justice, the impugned order dated 28.02.2025 was quashed and set aside.
  • The Department was directed to provide a fresh date of hearing and pass a reasoned order after affording an opportunity of hearing.

Important Clarification

  • Portal-only service of a hearing notice is inadequate once a taxpayer's GST registration has been cancelled, since the taxpayer is no longer expected to monitor the portal for departmental communications.
  • In such situations, service must be effected through an alternative mode - email or registered post - failing which any resultant order is liable to be quashed for breach of natural justice.

Sections Involved

  • Section 73, UP/CGST Act, 2017 - determination of tax not paid/short paid for reasons other than fraud.
  • Section 169, CGST Act, 2017 - modes of service of notice.

Decision – In Favour of

Decided in favour of the assessee; impugned order quashed and matter remanded for fresh hearing.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case No.: Writ Tax No. 4938 of 2025
  • Coram: Justice Shekhar B. Saraf and Justice Praveen Kumar Giri
  • Date: 25th September, 2025

Link to Download the Order

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