Uttarakhand HC Quashes GST Demand, Says Portal-Only Service Invalid After Registration Cancellation

The Uttarakhand High Court has reiterated that where a taxpayer's GST registration has already been cancelled, service of a Show Cause Notice and adjudication order solely through the GST portal cannot be treated as valid service under the GST law.

A division bench comprising Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay held that once registration stands cancelled, a taxpayer cannot be expected to continuously monitor the GST portal for notices and orders.

Referring to the Allahabad High Court's ruling in Ahs Steels v. Commissioner of State Taxes, the bench ruled, "In the instant case, the Petitioner's registration stood cancelled since 2018, and therefore, the Petitioner was not enjoined to monitor the GST portal. The insistence by the Department that portal-based service alone sufficed amounts to imposing a duty on a nonregistered person, which the law does not contemplate."

The petitioner, Vandana Distributors, challenged an adjudication order passed under Section 73(9) of the UKGST Act, 2017 and an appellate order dismissing its appeal as time-barred.

The petitioner contended that after its GST registration was cancelled on September 12, 2023 with effect from July 31, 2023, the department issued a Show Cause Notice dated December 23, 2023, and subsequently passed the adjudication order by merely uploading them on the GST portal.

It was argued that since the registration had already been cancelled, there was no occasion for the petitioner to keep checking the GST portal and therefore it remained unaware of the proceedings.

The Court noted that the Revenue did not dispute that the Show Cause Notice had been served only through the GST portal and through no other mode.

Relying on its earlier decision in Raj Shekhar Pandey v. State Tax Officer and the judgments of the Allahabad High Court in Ahs Steels v. Commissioner of State Taxes and Katyal Industries v. State of U.P., the Court held that portal-based service alone was insufficient in such circumstances.

The bench referred to the Allahabad High Court's observation that where a taxpayer's registration stands cancelled, the Department cannot insist that the taxpayer must continue monitoring the GST portal. It also noted the observation that Section 169 of the GST Act provides multiple modes of service and that the Department must ensure effective communication of notices.

The court further took note of the requirement under Section 75(4) of the GST Act mandating grant of an opportunity of hearing before passing an adverse order.

Holding that the principles laid down in the earlier judgments squarely applied to the facts of the present case, the Court quashed the adjudication order dated April 6, 2024, and the appellate order dated July 11, 2025.

However, liberty was reserved in favour of the Revenue to proceed afresh from the stage of the Show Cause Notice. The Court further directed that if the petitioner seeks a personal hearing, the same shall be granted in accordance with Section 75(4) of the GST Act.

For Petitioner: Mr. S.K.Posti, learned Senior Counsel, assisted by Mr. Ashutosh Posti

For Respondent: Ms. Pooja Banga, learned Standing Counsel