Uploading Notice on Portal not Sufficient Notice on Cancellation of GST Registration, should be Served on Assessee's Address: Allahabad HC [Read Order]

In a recent decision, the Allahabad High Court observed that uploading notice on the portal not sufficient notice on the cancellation of GST registration and it should be served on the assessee's address.

The first ground taken by the counsel for the petitioner is that the petitioner had cancelled its registration voluntarily on September 18, 2019, whereas the notice under Section 74 of the CGST Act was given to it only by way of uploading the same on the web portal on a subsequent date.

It was further submitted that the notice, that has been issued, was issued in the year 2021 or in late December 2020 as the date fixed for hearing was January 12, 2021 and that as the petitioner had already cancelled its registration voluntarily, it was not required to check the web portal.

The counsel also submitted that the appellate authority also did not grant a second opportunity of hearing to the petitioner and that the date fixed for hearing was August 22, 2023, on which date the petitioner could not appear. Subsequently, the appellate authority passed an order on October 5, 2023 dismissing the appeal of the petitioner on the ground that none appeared on behalf of the petitioner and reaffirming the order passed by Assistant Commissioner, State Tax.

The Supreme Court in Dharampal Satyapal Limited v. Deputy Commissioner of Central Excise, Gauhati and others, outlined the fundamental importance of providing an opportunity for hearing before making any decision, and characterized it as a basic requirement in any legal proceedings. The Supreme Court further propounded that compliance with principles of natural justice is an implied mandatory requirement, and non-observance of these principles can invalidate the exercise of power.

The recent judgment of the Supreme Court in Madhyamam Broadcasting Limited v. Union of India and others, wherein the Supreme court highlighted that the principles of natural justice of which audi alteram partem is a part, guarantee a reasonable procedure which is a requirement entrenched in Articles 14, 19 and 21 of the Constitution of India.

A Single Bench of Justice Shekhar B. Saraf observed that “In the present case, when the petitioner had cancelled its registration in the year 2019, a proper notice was required to be issued to it under Section 74 of the Act at its address. However, the authorities simply uploaded the Section 74 show cause notice on the web portal inspite of knowing that the petitioner had already cancelled its registration prior to the date of issuance of the show cause notice. This action clearly prevented the petitioner from appearing in the hearing in the original proceeding under Section 74 of the Act that was accordingly passed ex parte.”

To Read the full text of the Order CLICK HERE

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