The Allahabad High Court addressed a case concerning the cancellation of GST registration for M/s Sr Interiors, ruling on the necessity of proper service of notices post-cancellation. The petitioner's GST registration was cancelled on October 19, 2020, after which no business activities were conducted. However, a show cause notice was later uploaded solely on the GST portal, leading to ex parte orders on April 23, 2024, and June 19, 2025, under Sections 73 and 79(1)(c) of the U.P. GST Act. The petitioner contended that after the cancellation of registration, there was no obligation to monitor the GST portal, and that valid service required alternative methods of communication.
The central issue was whether uploading a notice on the GST portal alone constituted valid service for proceedings under the relevant sections of the U.P. GST Act, post-cancellation. The Court concluded that merely uploading a notice on the portal does not fulfill the requirement of valid service once registration is cancelled. The principles of natural justice dictate that proper communication must be established. Consequently, the Court quashed the ex parte orders, deeming them unsustainable due to ineffective service. The Court emphasized that notices must be served in a manner ensuring actual receipt, and granted the department the liberty to issue a new notice in compliance with legal requirements.
Order date: 09 Sept 2025
Parties: M/s Sr Interiors v. State of U.P. & Ors.
Facts –
- The petitioner’s GST registration was cancelled on 19 October 2020; no business was carried out thereafter. Despite cancellation, a show cause notice was uploaded only on the GST portal, and ex parte orders dated 23 April 2024 and 19 June 2025 were passed under Sections 73 and 79(1)(c) of the U.P. GST Act.
- The petitioner argued that once registration was cancelled, it was not obliged to monitor the GST portal, and valid service required alternative modes.
Issue –
- Whether uploading a notice on the GST portal alone, after cancellation of registration, constitutes valid service for proceedings under Sections 73 and 79(1)(c)?
Order –
- The Court ruled that portal upload alone is not valid service post-cancellation; natural justice requires proper communication.
- Since the petitioner was not effectively served, the impugned orders were quashed as unsustainable.
- Uploading notices without ensuring actual service cannot justify ex parte proceedings. Department was given liberty to issue fresh notice in accordance with law.
