Facts of the Case: M/S Pushp Transport Company had its GST registration under the Uttar Pradesh Goods and Services Tax Act, 2017 cancelled on 02.12.2020, following which no further business was carried out. Subsequently, a Show Cause Notice was uploaded on the GST portal, and the Assistant Commissioner, Rajya Kar, Sector-5, Mathura, passed an order dated 23.08.2024 under Section 73 of the Act. The petitioner challenged this order before the Allahabad High Court, contending that since its registration stood already cancelled, it had no occasion to access the GST portal and therefore never received effective notice of the proceedings.

Issues Involved:

  1. Whether mere uploading of a Show Cause Notice on the GST portal amounts to valid service where the assessee's registration has already been cancelled.
  2. Whether an order passed under Section 73 without effective service of notice violates principles of natural justice.

Petitioner's Arguments:

  • Once GST registration is cancelled, the assessee cannot reasonably be expected to continue monitoring the GST portal for notices.
  • Effective service of any Show Cause Notice ought to have been made through alternative means once the portal ceased to be a channel the assessee would ordinarily access.
  • Reliance was placed on the coordinate Bench decision in M/s Katyal Industries v. State of U.P. (2024:AHC:23697-DB), which had accepted this very principle.

Respondent's Arguments:

  • The order and notice were duly uploaded on the GST portal in accordance with the Department's standard practice for issuing communications.

Court Order / Findings:

  • The Division Bench agreed with the principle enunciated in Katyal Industries, holding that the mode of service of a Show Cause Notice on a person whose registration is already cancelled must be by way of alternative means, since such a person is not obligated to check the GST portal.
  • Finding a clear violation of the principles of natural justice, the Court quashed and set aside the impugned order dated 23.08.2024 passed under Section 73.
  • The Department was granted liberty to issue a proper notice to the petitioner afresh and proceed in accordance with law.

Important Clarification:

  • Once a taxpayer's GST registration stands cancelled, service of a Show Cause Notice by mere upload on the GST portal is not sufficient compliance with natural justice — the Department must serve such notice through alternative modes, since a person without live registration cannot reasonably be expected to keep monitoring the portal.

Sections Involved:

  • Section 73, UPGST Act, 2017 — determination of tax not paid for reasons other than fraud.
  • Principles of natural justice governing service of notice under the GST framework.

Decision – In Favour of: Assessee.

Case Details: High Court of Judicature at Allahabad; Writ Tax No. 4533 of 2025; Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Praveen Kumar Giri, J.; Date of Order: 18th September, 2025.

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