GST Circular Requiring Physical Service Of Notices After Registration Cancellation Is 'Founded On Sound Common Sense': Allahabad High Court
The Allahabad High Court has set aside an ex parte adjudication order passed under Section 74 of the UP GST Act, 2017 where the show-cause notice had been served on the dealer only through the Common Portal, almost five years after his registration had already been cancelled.
The Court noted that the Commissioner of Commercial Tax, U.P. had, by Circular dated May 07, 2025, issued binding instructions to subordinate authorities to serve physical notice on noticees facing adjudication proceedings begun after cancellation of their registration.
The bench of Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi held
“The above Circular is founded on sound common sense inasmuch as once the registration of a person is cancelled, he may remain disabled and in any case he may not be obligated to work on the Common Portal, thereafter. Unless the person works on the Common Portal against the registration number assigned to him, he may remain unaware of any proceedings instituted against him, after cancellation of its registration”.
Petitioner's registration was cancelled on November 21,2020. The show-cause notice came to be issued five years later, on 30.09.2025, and only electronically through the Common Portal. Having no occasion to operate the portal, the petitioner remained unaware of the adjudication proceedings, which proceeded ex parte and ended in the order dated March 28,2026
It was only when recovery was pressed against him on the strength of that order that the petitioner learnt of it. He then approached the High Court challenging the adjudication order on the short ground of absence of service.
Standing Counsel for the revenue, confronted with the position, submitted that given the Commissioner's Circular, the petitioner's contention could not be disputed.
Finding nothing to be gained by keeping the petition pending or by calling for a counter affidavit, the Court set aside the adjudication order dated March 28,2026
The petitioner was granted two weeks to file its final reply to the show-cause notice dated 30.09.2025. The Court directed that if the petitioner seeks an opportunity to cross-examine any witness or to be supplied the documents relied upon, such application must be made along with the reply and must be decided before any date is fixed for final hearing. The adjudicating authority was directed to then communicate the date of personal hearing with at least 15 days advance notice, and to pass a reasoned order within a further month, so that the proceedings conclude on or before 31.12.2026.
Accordingly, the writ petition was disposed of.