Uploading a show cause notice solely on the GST portal after registration cancellation is invalid.
Issue
Whether uploading a Show Cause Notice (SCN) for tax determination exclusively on the GST portal constitutes valid legal service under Section 169 of the CGST Act once a taxpayer’s registration has already been cancelled, and whether an order passed pursuant to such service violates the principles of natural justice.
Facts
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The petitioner was a registered person under the GST regime whose registration was formally cancelled in June 2018.
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Following the cancellation of the registration, the petitioner completely ceased operations and carried out no further business activities.
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The Revenue subsequently initiated tax determination proceedings and served an SCN to the petitioner solely by uploading it onto the automated GST portal.
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In April 2024, Respondent No. 2 passed a final tax determination order based on the portal-uploaded notice.
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The petitioner filed a writ petition before the High Court challenging the legal validity of the service and alleging a total breach of natural justice.
Decision
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Held, that once a taxpayer’s GST registration stands cancelled, they are under no legal obligation or statutory duty to continuously log in and check the GST portal for updates.
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Held, that service of an SCN post-cancellation must be served using alternative modes of communication under Section 169 to ensure the taxpayer actually receives it.
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Held, that merely uploading a notice to the portal of a cancelled entity does not constitute valid or proper service for initiating fresh assessment proceedings.
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Held, that because the notice was not legally served, the subsequent proceedings suffered from a fatal violation of the principles of natural justice.
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Held, that the impugned tax determination order is quashed in full, with liberty granted to the department to issue a fresh notice through a valid mode of communication.
Key Takeaways
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No Duty to Monitor Post-Cancellation: The legal expectation to regularly monitor the ‘View Additional Notices’ tab or dashboard on the GST portal ends once a registration is cancelled by the department or surrendered.
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Portal Service is Conditional: While electronic portal service is standard for active taxpayers, it cannot be used as a blind default for closed businesses where actual delivery of notice must be practically ensured.
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Jurisdictional Defect: Failing to properly serve a statutory notice under Section 169 is a jurisdictional error that invalidates all subsequent assessment and recovery orders.