Portal-Only Notice Upload Post-Registration Cancellation

Portal-Only Notice Upload Post-Registration Cancellation Violates Section 169 and Principles of Natural Justice

Issue

Whether uploading a Show Cause Notice solely on the GST portal constitutes valid statutory service under Section 169 after a dealer’s registration has been cancelled, and whether a consequential demand order passed without alternative mode of service violates the principles of natural justice.

Facts

Assessee Status: The petitioner was a registered dealer under the Uttar Pradesh Goods and Services Tax Act.
Registration Status: The petitioner’s GST registration had been cancelled, and no business operations were carried out post-cancellation.
Notice & Order: The adjudicating authority issued a Show Cause Notice under Section 74 but uploaded it solely on the GST portal.
Ex-Parte Demand: Due to non-receipt of notice via any alternative mode, the petitioner could not respond, resulting in an ex-parte demand order passed against them.
Writ Challenge: The petitioner filed a writ petition under Article 226 challenging the validity of the service and the consequential demand order on the grounds of natural justice breach.

Decision

Obligation Post-Cancellation: Once a taxpayer’s registration is cancelled, they are no longer obligated to routinely check the GST portal for communications.
Invalidity of Portal-Only Service: Serving notice solely by portal upload, without employing alternative statutory modes prescribed under Section 169 to reach the ex-taxpayer, fails to fulfill statutory service requirements.
Breach of Natural Justice: Failure to properly serve notice deprived the petitioner of a reasonable opportunity of being heard, thereby violating natural justice principles.
Quashing of Order: The impugned demand order was quashed and set aside [Paras 4 and 6].
Department Liberty: The Revenue was granted liberty to issue a fresh notice through proper modes of service and proceed in accordance with law [Paras 4 and 6].

Key Takeaways

No Presumption of Portal Monitoring Post-Cancellation: Tax authorities cannot rely on portal uploads as effective service for taxpayers whose registrations stand cancelled or deactivated.
Mandate of Multi-Mode Service under Section 169: When portal communication is unlikely to reach the addressee due to registration status, the Revenue must utilize alternative modes (such as physical delivery, registered post, or email) to ensure effective notice.
Fatal Procedural Defect: Non-service of notice strikes at the root of jurisdiction, rendering any consequential demand order void for violation of natural justice.

HIGH COURT OF ALLAHABAD

Ved Enterprises Unnao

State of U.P.

Shekhar B. Saraf and ABDHESH KUMAR CHAUDHARY, JJ.

WRIT TAX No. 1108 of 2026

AUGUST 19, 2026

Mukesh Kumar Tewari, Learned Counsel for the Petitioner. Sanjay Sarin, Learned Additional Chief Standing Counsel for the Respondent.

ORDER

1. Heard Sri Mukesh Kumar Tewari, learned counsel appearing on behalf of the petitioner and Sri Sanjay Sarin, learned Additional Chief Standing Counsel appearing on behalf of the State-respondents.

2. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order dated May 28, 2022 passed by the respondent No.2/Deputy Commissioner, State Tax, Sector-1, District Unnao under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”).

3. Factual matrix in the matter is that the petitioner’s registration under the Act was cancelled on 16.11.2021. Subsequent to the same, no business was carried out by the petitioner. It appears that a show cause notice was uploaded on the GST portal and subsequent to the same, the order impugned was passed under Section 74 of the Act.

4. Once the registration has been cancelled, the petitioner is not obligated to check GST portal. The mode of service of any show cause notice has to be by way of alternative means to the petitioner.

5. Counsel appearing on behalf of the petitioner relies upon an order passed by the coordinate Bench of this Court in Katyal Industries v. State of U.P. , Neutral Citation No.2024:AHC:23697-DB. We are essentially in agreement with the said principle enunciated by the coordinate Bench in the said order.

6. We find that there has been violation of the principle of natural justice, and accordingly, the impugned order dated May 28, 2022 passed by the respondent No.2 is quashed and set aside. The Department shall be at liberty to issue a proper notice to the petitioner and act in accordance with law.

7. With the above direction, the writ petition is disposed of.