Laxmi Electricals And Construction Company Vs State of U.P. and Another (Allahabad High Court)
The Allahabad High Court considered whether an adjudication order dated 20.08.2024, arising from a show cause notice dated 31.05.2024, was invalid due to denial of an effective opportunity of hearing. The petitioner’s GST registration had already been cancelled on 01.06.2023, yet the show cause notice initiating adjudication proceedings was served only by uploading it on the GST Common Portal.
The Court noted the respondents’ own stand, as recorded in an earlier decision, that where a person’s GST registration has been cancelled, adjudication proceedings should be initiated by physical service of notice. It observed that once registration stands cancelled, the person is disabled from operating the Common Portal and is no longer expected to monitor it. Therefore, any post-cancellation adjudication notice should be served physically in accordance with Section 169(1)(a) and (b) of the U.P. GST Act, 2017.
The Court held that the failure to serve a physical notice resulted in a substantial violation of the principles of natural justice, depriving the petitioner of the opportunity to file objections and avail the statutory right of hearing under Section 75(4).
Accordingly, the High Court set aside the adjudication order and remanded the matter for fresh adjudication. It directed the authority to issue a fresh physical notice along with the relied upon documents, permit the petitioner to file a written reply, grant at least 15 days’ advance notice for hearing, and conclude the proceedings in accordance with law.
