Facts of the Case

M/s. E-Coat Mobile Protection challenged an order dated 27.02.2025 (DIN & Order No.47/2024-25, T.No.4280/2024-25) passed by the Assistant Commissioner of Commercial Taxes, LGSTO-56, Bengaluru, under Section 73 of the Act for FY 2020-21. The petitioner's grievance was that it had stopped its business and got its GST registration cancelled, after which it no longer had access to the GST portal, and no notice was served upon it by any alternate means before the ex-parte order was passed.

Issues Involved

  1. Whether a show cause notice can be validly served by e-mail alone once the taxpayer's GST registration stands cancelled.
  2. What mode of service is mandated for a taxpayer whose registration is cancelled and who therefore has no reasonable access to the GST portal.
  3. Whether the impugned Section 73 order should be set aside for improper service, with an opportunity to reply.

Petitioner's Arguments

  • The petitioner contended that the impugned order was passed without any notice being issued to it, because it was not using the GST portal after having stopped its business and secured cancellation of registration, and thereafter had no access to the portal.

Respondent's Arguments

  • The learned AGA appeared for the respondent; the order does not record any specific rebuttal of the petitioner's factual claim of non-service, and the matter proceeded on the legal principle governing service after cancellation.

Court Order / Findings

  • The Court held that when a GST registration is cancelled, a notice cannot be served merely by e-mail but must instead be served by way of Registered Post Acknowledgement Due (RPAD).
  • Since this mandatory RPAD service had not been undertaken, the Court held that valid service on the petitioner could not be deemed to have been effected, and accordingly quashed the impugned order dated 27.02.2025 by issuance of a certiorari.
  • The petitioner was permitted to reply to the underlying show cause notice, without requiring any fresh notice, by appearing before the respondent by 2:30 PM on 5.8.2025, with the respondent directed to consider the reply and pass fresh orders in accordance with law.

Important Clarification

  • Once a taxpayer's GST registration is cancelled, service of a show cause notice by e-mail alone is insufficient in law — the Department must resort to Registered Post Acknowledgement Due to effect valid service.
  • This is a firmer articulation than mere 'alternate means' language seen in comparable rulings, specifically identifying RPAD as the required mode once registration is cancelled.
  • Setting aside for improper service under this principle typically comes with a short, fixed window for the taxpayer to appear and reply without any fresh notice being required.

Sections Involved

  • Section 73 of the Central/Karnataka Goods and Services Tax Act, 2017 – the provision under which the demand order was passed.
  • Section 169 of the CGST/KGST Act, 2017 – governs modes of service, with RPAD identified as mandatory once registration is cancelled.

Decision – In Favour of

In favour of the assessee — the Section 73 order was quashed for improper service, with the petitioner given a fixed short window to reply and be heard.

Case Details

Court: High Court of Karnataka at Bengaluru
Case No.: WP No. 18185 of 2025 (T-RES)
Coram: Hon'ble Mr. Justice Suraj Govindaraj
Date of Order: 16.07.2025

Link to Download the Order

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