Facts of the Case

The petitioner, Anand Kumar Goel, proprietor of M/S Shree Durga Trading Company, had his GST registration cancelled on 23.07.2022, after which he carried out no further business. A show cause notice dated 07.05.2024 was uploaded on the GST portal, and consequent to the petitioner's non-response, an order dated 28.08.2024 was passed against him under Section 73 of the UPGST Act, 2017. The petitioner challenged both the notice and the order before the Allahabad High Court (Lucknow Bench), contending that once registration stands cancelled, there is no obligation on him to keep checking the GST portal for communications.

Issues Involved

  1. Whether service of a show cause notice/order solely by uploading it on the GST portal is sufficient when the taxpayer's registration already stands cancelled.
  2. Whether such mode of service, in the facts of the case, violated the principles of natural justice.

Petitioner's Arguments

  • Once registration is cancelled, the petitioner is not obligated to continue checking the GST portal for notices.
  • Service of the show cause notice ought to have been effected through alternative modes under Section 169 of the Act.
  • Reliance was placed on the coordinate Bench decision in M/s Katyal Industries v. State of U.P. (Neutral Citation 2024:AHC:23697-DB), which enunciated the same principle.

Respondent's Arguments

  • The State did not seriously contest the applicability of the Katyal Industries principle to the facts of the case.

Court Order / Findings

  • The Division Bench agreed with the principle laid down in M/s Katyal Industries that a person whose registration is cancelled cannot be expected to monitor the GST portal.
  • Holding that there was violation of the principle of natural justice, the Court quashed and set aside both the order dated 28.08.2024 and the notice dated 07.05.2024.
  • The department was given liberty to issue a proper notice to the petitioner and proceed in accordance with law.

Important Clarification

  • Where a taxpayer's GST registration has already been cancelled before a show cause notice is issued, mere uploading of that notice on the common portal is not treated as effective or sufficient service; alternative modes under Section 169 must be resorted to.
  • This distinguishes such cases from ordinary 'Additional Notices tab' disputes involving active registrants, since a person with a cancelled registration has no practical occasion or obligation to log into the portal at all.

Sections Involved

  • Section 73, CGST/UPGST Act, 2017 – determination of tax not paid for reasons other than fraud.
  • Section 169, CGST Act, 2017 – modes of service of notices, orders and other communications.

Decision – In Favour of

Disposed of in favour of the Assessee; both the show cause notice and the consequential order were quashed, with liberty to the department to proceed afresh with proper service.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1589 of 2025; Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Manjive Shukla, J.; Order dated 15.12.2025.

Link to Download the Order

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