Micasa Vs Union of India and 3 others (Allahabad High Court)
Allahabad High Court has ruled that a Goods and Services Tax (GST) payer is not obligated to continuously monitor the GST portal for notices pertaining to the 2018-19 financial year, especially after their registration was cancelled on March 31, 2019. The judgment came in the case of Micasa Vs Union of India and 3 others, where the petitioner challenged an adjudication order dated April 24, 2024.
The court noted the undisputed fact that the petitioner’s GST registration was cancelled effective March 31, 2019, and had neither been revived nor was revival sought by the petitioner. Given this circumstance, the High Court accepted the argument that the petitioner could not be expected to access the GST portal for e-notices issued for the period prior to the cancellation.
Crucially, the revenue authorities also failed to demonstrate that any physical or offline notice was served upon the petitioner before the impugned order was passed. The High Court emphasized that the “essential requirement of rules of natural justice” had not been fulfilled due to the lack of proper notice.
Consequently, the court set aside the adjudication order dated April 24, 2024. The petitioner has been granted a period of four weeks to submit a reply to the show cause notice. Following this submission, the authorities are directed to pass a fresh order, affording the petitioner an opportunity for a personal hearing, as expeditiously as possible, ideally within three months. The writ petition was disposed of accordingly, highlighting the importance of proper communication and adherence to natural justice principles, particularly when a taxpayer’s registration status changes. No specific judicial precedents were explicitly referenced in the provided text of this judgment.
