Steps Care India Vs Commissioner of State Tax And Another (Allahabad High Court)
The Allahabad High Court held that an adjudication order passed pursuant to a show cause notice served only through the GST common portal after cancellation of GST registration was not sustainable in law. The petitioner’s registration had been cancelled on 13 November 2019, while the show cause notice was issued on 27 May 2024 solely through electronic mode and uploaded on the common portal. The Court observed that once registration is cancelled, a taxpayer is effectively disabled from accessing the portal and is no longer obligated to monitor it. Therefore, physical service of notice under Section 169(1)(a) or (b) of the UPGST Act becomes necessary. The Court found that failure to physically serve the notice resulted in substantial violation of principles of natural justice and deprived the petitioner of the opportunity to file objections or be heard, a right protected under Section 75(4). Accordingly, the adjudication order dated 28 August 2024 was set aside and the matter remanded for fresh adjudication after issuing a physical notice along with relied-upon documents.
Facts:
M/s. Steps Care India (‘the Petitioner’) had its GST registration cancelled by an order dated November 13, 2019. Subsequently, a show cause notice dated May 27, 2024 was issued to the Petitioner through electronic mode by uploading it on the common portal.
