Facts of the Case

The petitioner, M/S Shukla Auto Mobiles, challenged an order dated 01.04.2024 passed by the Deputy Commissioner, State Tax, Mirzapur, under Section 73 of the UP GST Act, 2017. The petitioner's GST registration had already been cancelled on 31.05.2022, after which no business was carried out. A show cause notice was subsequently uploaded only on the GST portal, and the impugned order was passed based on that notice without any alternative mode of service being attempted.

Issues Involved

  1. Whether a taxpayer whose GST registration stands cancelled is obligated to continue monitoring the GST portal for departmental notices.
  2. Whether an order passed on the basis of a portal-only notice, without alternative service, violates principles of natural justice.

Petitioner's Arguments

  • Since the petitioner's registration had already been cancelled well before the show cause notice was issued, it was not obligated to keep checking the GST portal.
  • The mode of service in such circumstances ought to have been an alternative means reaching the petitioner directly, not mere portal upload.
  • Reliance was placed on a coordinate Bench ruling in M/s Katyal Industries vs. State of U.P., which enunciated the same principle.

Respondent's Arguments

  • The record showed the notice was uploaded on the GST portal in the ordinary course; the Department did not seriously contest the fact of the prior cancellation of registration.

Court Order / Findings

  • Agreeing with the principle laid down in Katyal Industries, the Court held that a taxpayer whose GST registration has been cancelled is not bound to monitor the GST portal, and service of a show cause notice by portal upload alone, without an alternative mode, breaches natural justice.
  • Finding a clear violation of natural justice, the impugned order dated 01.04.2024 was quashed and set aside.
  • The department was granted liberty to issue a proper notice to the petitioner and proceed afresh in accordance with law.

Important Clarification

  • Cancellation of GST registration relieves the taxpayer of any continuing duty to monitor the GST portal; the department must thereafter serve notices through an alternative recognised mode to satisfy natural justice.
  • An order passed solely on the strength of portal-uploaded notice in such post-cancellation circumstances is liable to be quashed, with liberty reserved to the department to issue proper notice afresh.

Sections Involved

  • Section 73, UP GST Act, 2017 - determination of tax not paid/short paid.
  • Section 169, CGST Act, 2017 - modes of service of notice.

Decision – In Favour of

Decided in favour of the assessee; impugned order quashed, department at liberty to issue proper notice.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case No.: Writ Tax No. 4834 of 2025
  • Coram: Justice Shekhar B. Saraf and Justice Praveen Kumar Giri
  • Date: 23rd September, 2025

Link to Download the Order

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