Portal-only service of show cause notice is inadequate after GST registration cancellation.

By | August 10, 2026
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Portal-only service of show cause notice is inadequate after GST registration cancellation.

Issue

Whether uploading a show cause notice exclusively on the GST portal constitutes valid service under Section 169 of the Central/Uttar Pradesh Goods and Services Tax Act, 2017 when the taxpayer’s GST registration has already been cancelled and no business operations are ongoing.

Facts

  • Registration Status: The petitioner was a registered person under the Uttar Pradesh Goods and Services Tax Act, 2017 whose GST registration was cancelled.
  • Cessation of Business: Following the cancellation of registration, the petitioner carried on no further business activity.
  • Service of Show Cause Notice: The Assistant Commissioner, State Tax, uploaded a show cause notice under Section 73 solely on the GST portal without serving it through any alternative mode.
  • Ex-Parte Order: Consequent to the portal-only notice, a demand order was passed against the petitioner.
  • Writ Petition: The petitioner approached the High Court under writ jurisdiction, challenging the demand order on the grounds of improper service and violation of natural justice.

Decision

  • No Obligation to Access Portal: Once a GST registration stands cancelled, a person is under no legal or practical obligation to continuously monitor or log into the GST portal.
  • Inadequacy of Portal-Only Service: Serving a show cause notice by exclusively uploading it on the portal after registration cancellation does not constitute valid or effective service.
  • Violation of Natural Justice: Failure to serve the notice via alternative modes provided under Section 169 resulted in a clear breach of the principles of natural justice.
  • Final Verdict: The impugned demand order was quashed and set aside, with liberty granted to the tax authorities to issue a proper notice through alternative means and proceed in accordance with law (In favor of assessee).

Key Takeaways

  • Alternative Service Mandatory Post-Cancellation: Tax authorities cannot rely solely on portal uploads under Section 169 when dealing with taxpayers whose registrations have been cancelled.
  • No Continuous Portal Monitoring: Deemed service via the GST portal is invalid when the underlying business activity has ceased and the registration is non-existent.
  • Natural Justice Breach Nullifies Demand: Orders passed without verifying proper personal or postal service on non-operational entities are legally unsustainable and subject to being quashed.
HIGH COURT OF ALLAHABAD
A.K. Traders
v.
State of U.P.
Shekhar B. Saraf and ABDHESH KUMAR CHAUDHARY, JJ.
WRIT TAX No. 1013 of 2026
JULY  28, 2026
Deepak Kumar Pandey, Piyush Agnihotri and Gaurav Singh, Counsels for the Petitioner.
ORDER
1. Heard learned counsel for the parties and perused the record.
2. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order passed by the respondent No.2, Assistant Commissioner Sitapur, Sector-1, State Tax under Section 73 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 02.01.2025. 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 73 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. [Writ Tax No. 140 of 2026]. 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 20.12.2025 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.