Allahabad High Court quashes GST Order for portal only GST Notice

The High Court quashed GST order because the department only uploaded the GST notice to the portal after cancelling the company’s registration and it was not properly communicated by to the taxpayer.

Fact of the Case

Jai Bajrang Enterprises challenged a GST order in the Allahabad High Court. The Commercial Tax Officer had issued the order under Section 73(9) of the UP GST Act, 2017. But the company’s GST registration was cancelled way back on November 7, 2019. After that, they stopped doing business. Even so, the department uploaded a show cause notice to the GST portal and later passed an order against the taxpayer. This was not properly communicated to the taxpayer.

Issues

Does it even count as proper notice if all they do is post it on the portal? Especially when someone’s GST registration is cancelled and no proper notice is sent?

Court Observation

The court made it clear once registration is cancelled, people are not checking the portal every day. Just uploading a notice is not enough. The department should’ve tried other ways to let them know. Missing that step goes against basic fairness.

Judgment

The High Court cancelled the GST order from May 30, 2022, because it violated natural justice. They told the department to issue a fresh notice, serve it properly, and follow the law.