Facts of the Case

The petitioner's GST registration had been cancelled on 19.10.2020, after which no business was carried out. Subsequently, a show cause notice was uploaded on the GST portal and, on the basis of that notice, orders dated 23.04.2024 and 19.06.2025 were passed against the petitioner under Sections 73 and 79(1)(c) of the UPGST Act, 2017. The petitioner challenged these orders before the Allahabad High Court, contending that, its registration having been cancelled years earlier, it was under no obligation to keep checking the GST portal, and that the mode of service ought to have been by alternative means.

Issues Involved

  1. Whether a taxpayer whose GST registration has already been cancelled is obligated to continue monitoring the common GST portal for subsequent notices and orders.
  2. Whether Section 73/79(1)(c) proceedings initiated solely through portal upload, without any alternative mode of service, on a taxpayer with a cancelled registration violate principles of natural justice.

Petitioner's Arguments

  • Once the registration had been cancelled, the petitioner was not obligated to check the GST portal for any notice, and the mode of service of the show cause notice ought to have been by alternative means.
  • Relying on the coordinate Bench decision in M/s Katyal Industries v. State of U.P. and others (Neutral Citation No.2024:AHC:23697-DB), it was submitted that the principle enunciated therein squarely applied and the impugned orders were liable to be quashed.

Respondent's Arguments

  • No material was placed on record to justify service on a taxpayer whose registration stood cancelled solely by upload on the GST portal; the Department's position is reflected in the Court's own agreement with the principle in Katyal Industries.

Court Order / Findings

  • The Court agreed with the principle enunciated by the coordinate Bench in Katyal Industries, holding that once registration has been cancelled, the taxpayer is not obligated to check the GST portal and the mode of service of any show cause notice has to be by way of alternative means.
  • Finding a violation of the principles of natural justice, the Court quashed and set aside the impugned orders dated 23.04.2024 and 19.06.2025.
  • The Department was given liberty to issue a proper notice to the petitioner by alternative means and to act in accordance with law thereafter.

Important Clarification

  • A taxpayer whose GST registration has already been cancelled cannot reasonably be expected to continue monitoring the common GST portal, and the department cannot treat mere upload of a Section 73 show cause notice or a Section 79(1)(c) recovery notice on the portal as effective service on such a person.
  • Alternative modes of service — such as registered post, email, or other means recognised under Section 169 — must be adopted for taxpayers with cancelled registrations before any adverse order can validly be passed against them.

Sections Involved

  • Section 73, CGST/UPGST Act, 2017 — determination of tax not paid, short paid or erroneously refunded.
  • Section 79(1)(c), CGST Act, 2017 — recovery of tax by detaining and selling goods/other recovery modes.
  • Section 169, CGST Act, 2017 — modes of service of notice.

Decision – In Favour of

In favour of the Assessee. Both impugned orders were quashed, with liberty to the department to issue proper notice by alternative means.

Case Details

High Court of Judicature at Allahabad; WRIT TAX No.4463 of 2025; Coram: Hon'ble Justice Shekhar B. Saraf and Hon'ble Justice Praveen Kumar Giri; Date of Order: 09.09.2025.

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