Facts of the Case

M/S Uttaranchal Steels Private Limited was aggrieved by an ex parte order dated 30.01.2025 passed by the Joint Commissioner, Central GST Commissionerate, Meerut, under Section 74 of the Central GST Act, 2017. The petitioner's GST registration had earlier been cancelled with effect from 23.11.2020 (order dated 12.11.2020). Subsequent to this cancellation, a show cause notice was issued by the respondent authority and merely published on the GST portal, without any physical or email service on the petitioner, who consequently had no opportunity to respond before the ex parte order was passed.

Issues Involved

  1. Whether, once a taxpayer's GST registration is cancelled, a show cause notice under Section 74 must additionally be served physically or by email, and cannot rest solely on portal upload.
  2. Whether an ex parte order passed without such service is liable to be quashed.

Petitioner's Arguments

  • Since the GST registration stood cancelled, the petitioner would not ordinarily access the GST portal, and mere upload of the show cause notice on the portal did not constitute effective service.
  • The consequent ex parte order under Section 74 was passed without the petitioner ever being made aware of the proceedings.

Respondent's Arguments

  • Counsel for the GST authorities appeared and placed the departmental record before the Court; the order does not record any specific justification for having relied solely on portal upload despite the registration having already been cancelled.

Court Order / Findings

  • The Court held that since the petitioner's registration was cancelled, it was incumbent upon the authorities to issue the show cause notice physically or by email, which admittedly was not done.
  • The entire proceedings emanating from the show cause notice, including the ex parte order dated 30.01.2025, were quashed and set aside.
  • The authorities were directed to provide the petitioner a copy of the show cause notice and all accompanying documents within two weeks, allow four weeks thereafter for a reply, and thereafter grant personal hearing and pass a reasoned order in accordance with law.

Important Clarification

  • Once a taxpayer's GST registration has been cancelled, the Department cannot rely solely on portal upload to discharge its obligation of serving a show cause notice under Section 74 — physical or email service becomes necessary, since the taxpayer can no longer be expected to routinely monitor the portal.
  • Failure to ensure such alternate service renders any consequent ex parte order void for denial of natural justice.

Sections Involved

  • Section 74, CGST Act, 2017 — determination of tax involving fraud, wilful misstatement or suppression.
  • Section 169, CGST Act, 2017 — modes of service of notice, including physical and electronic service.

Decision – In Favour of

Assessee. Ex parte order and consequent proceedings quashed; fresh service, reply opportunity, hearing and reasoned order directed.

Case Details

High Court of Judicature at Allahabad; Writ Tax No. 2987 of 2025; Neutral Citation No. 2025:AHC:119403-DB; Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Praveen Kumar Giri, J.; Order dated 22.07.2025.

Link to Download the Order

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