GST SCN Issued Only via Portal After Registration Cancellation Violates Natural Justice: Allahabad HC [Read Order]

The Allahabad High Court (Lucknow Bench) has quashed GST proceedings initiated through a show cause notice uploaded only on the GST portal after cancellation of registration. As per the Bench, such service violates principles of natural justice.

The writ petition was filed by M/s Suman Overseas challenging the validity of Notification No. 56/2023-Central Tax dated 28.12.2023 and the corresponding State notification for FY 2018-19. The petitioner also questioned the scrutiny and consequential orders passed under Section 61 of the Central Goods and Services Tax Act, 2017. It was contended that the proceedings were without jurisdiction and barred by limitation under Section 73.

The petitioner submitted that its GST registration had been cancelled on 30.11.2018 and the subsequent show cause notice dated 25.12.2023 was issued only through the GST portal. There was no service by email or registered post. It was argued that after cancellation of registration, service of notices only through the portal was invalid as it deprived the petitioner of a reasonable opportunity to respond.

The Division Bench comprising Justice ShekharB. Saraf and Justice Manjive Shukla noted that when the registration of the petitioner got cancelled, the authorities were required to serve notices through alternate permissible modes such as email or registered post. The Court observed that merely uploading the show cause notice on the portal could not be treated as valid service in such circumstances.

As a result, the High Court quashed the impugned orders passed on grounds of improper service and violation of natural justice. The Court directed the authorities to grant the petitioner an opportunity to file a reply after a fair hearing.

With these directions, the writ petition was disposed of.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates