Physical GST Notice Mandatory After Registration Cancellation: Allahabad High Court Ruling Explained
Background of the Dispute
In Laxmi Electricals And Construction Company Vs State of U.P. and Another, the Allahabad High Court examined whether an adjudication order dated 20.08.2024, founded on a show cause notice issued on 31.05.2024, could stand when the assessee’s GST registration had already been cancelled on 01.06.2023.
The core legal issue was whether an adjudication notice uploaded only on the GST Common Portal, after cancellation of registration, amounts to valid service, and whether failure to physically serve such notice leads to violation of principles of natural justice, particularly the right of hearing under Section 75(4) of the U.P. GST Act, 2017.
Facts Considered by the Court
Cancellation and Subsequent Proceedings
- The assessee’s GST registration was cancelled by order dated 01.06.2023.
- Despite this cancellation, a show cause notice dated 31.05.2024 initiating adjudication was served only by posting it on the GST Common Portal.
- Relying on this electronic service, the adjudicating authority proceeded ex parte and passed an adjudication order on 20.08.2024.
The assessee approached the High Court contending that:
- After cancellation of registration, the assessee could not effectively access or operate the Common Portal.
- The assessee was under no obligation to continue to monitor electronic communications on the GST portal once registration stood cancelled.
- Absence of physical service of the notice deprived the assessee of an opportunity to file a reply and avail of a personal hearing guaranteed by
Section 75(4)of the U.P. GST Act, 2017.
Reliance on Earlier Stand of the Department
The Court referred to the respondents’ own stance recorded in M/S Bambino Agro Industries Ltd. Vs. State of Uttar Pradesh & Anr.; 2025:AHC:229995-DB. In that matter, the State authorities had themselves accepted that:
In situations where the GST registration of a person has been cancelled, any subsequent adjudication proceedings must be initiated only through physical service of notice, not merely by uploading it on the Common Portal.
This departmental position emanated from an internal circular that required physical service in post-cancellation adjudications. The High Court noted that this circular was consistent with basic logic and practical functioning of the GST system.
Statutory Framework: Service of Notice and Right of Hearing
Service of Notice under Section 169
The Court examined the provisions of Section 169(1)(a) and Section 169(1)(b) of the U.P. GST Act, 2017, which deal with the valid modes of service of decisions, orders, summons, notices, and other communications.
These clauses contemplate physical modes of service, such as:
- Direct service on the person concerned or on an authorised representative
- Service by registered or speed post or courier at the last known place of business or residence