Facts of the Case

M/S I Interior, a proprietary concern, challenged an adjudication order dated 20 July 2024 passed under Section 73(9) of the CGST/SGST Act read with Rules 100(1), 100(2), 100(3) and 142(5) of the KGST Rules. The petitioner's GST registration had already been cancelled at the time the show cause notice was issued, and the notice was communicated only by e-mail and posted on the portal, of which the petitioner could not take cognisance.

Issues Involved

  1. Whether service of a show cause notice by e-mail and portal upload is sufficient once the addressee's GST registration stands cancelled, or whether service by registered post with acknowledgment due is required.

Petitioner's Arguments

  • Since the GST registration had been cancelled before issuance of the notice, the petitioner had no occasion to access the portal, and e-mail/portal service alone did not constitute effective service in the circumstances.

Respondent's Arguments

  • (No substantive contest on the service-of-notice point is recorded; the order proceeds on the petitioner's uncontroverted grievance regarding mode of service post-cancellation.)

Court Order / Findings

  • The Court held that once registration has been cancelled, notice could not have been issued merely by e-mail, but ought to have been issued by registered post with acknowledgment due, and only after service was thus complete could the matter be proceeded with.
  • The writ petition was allowed and the impugned order dated 20 July 2024 set aside, with the matter remitted to the adjudicating authority for fresh consideration.
  • The petitioner was granted liberty to file a reply to the show cause notice by 5 August 2025 and to appear before the authority on that date, which was directed to consider the reply and proceed further in accordance with law.

Important Clarification

  • Where a taxpayer's GST registration stands cancelled, service of a subsequent show cause notice by e-mail or portal upload alone is not adequate; service ought to be effected by registered post with acknowledgment due, and adjudication cannot proceed until such service is complete.

Sections Involved

  • Section 73(9), CGST/SGST Act, 2017 – determination and order of tax, interest and penalty.
  • Rules 100 and 142(5), KGST Rules, 2017 – procedure for assessment and issue of summary of order.

Decision – In Favour of

Decided in favour of the Assessee – the adjudication order is set aside and the matter remitted for fresh consideration after proper service and reply.

Case Details

  • Court: High Court of Karnataka at Bengaluru
  • Case No.: WP No. 12874 of 2025 (T-RES)
  • Neutral Citation: NC: 2025:KHC:26533
  • Coram: Hon'ble Justice Suraj Govindaraj
  • Date of Order: 16 July 2025

Link to Download the Order

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