Mere portal-based notices insufficient once GST Registration is cancelled: Allahabad HC

Kiran Enterprises Vs State of U.P (Allahabad High Court)

The writ petition challenged multiple orders passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017, on the ground of violation of natural justice. The petitioner’s GST registration had been cancelled on January 8, 2021, after which no business activity was carried out. Despite the cancellation, a show cause notice was uploaded on the GST portal and consequential orders were passed by the authorities. The Court noted that once registration is cancelled, the petitioner is not obligated to regularly check the GST portal. In such circumstances, service of a show cause notice must be effected through alternative modes. The Court agreed with the principle laid down by a coordinate Bench that merely uploading a notice on the portal is insufficient when registration stands cancelled. Finding that the impugned orders were passed without proper service of notice, the Court held that there was a violation of the principles of natural justice. Consequently, the orders dated April 23, 2022, November 23, 2022, April 24, 2022, and February 13, 2025 were quashed. The department was granted liberty to issue a fresh and proper notice and proceed in accordance with law.