M/S Khwaja Telecom vs. State Of U.P. And Another

Facts

The petitioner, M/S Khwaja Telecom, had its GST registration under the UPGST Act, 2017, cancelled on November 5, 2024, effective from the same date. The revenue has not contended that this registration was ever revived or that the petitioner sought its revival. Consequently, the petitioner argues it was not obligated to check the GST portal for show cause notices issued for the period April 2020 to March 2021, which preceded the adjudication order dated February 9, 2025. The revenue has also not claimed that any physical or offline notice was served on the petitioner before the impugned order was passed. The High Court noted these peculiar facts and deemed it unnecessary to keep the petition pending or relegate the petitioner to an alternative remedy.

Held

The Court held that the petitioner was not obligated to visit the GST portal to receive show cause notices for the period April 2020 to March 2021, as its GST registration had been cancelled effective November 5, 2024, and this cancellation was not disputed or revived. The Court found that the adjudication order dated February 9, 2025, passed without issuing any physical/offline notice to the petitioner, violated the essential requirement of the rules of natural justice. The reasoning was based on the undisputed facts that the petitioner's registration was cancelled and no physical notice was served. The ratio decidendi is that a taxpayer whose GST registration has been cancelled and who has not sought revival of the same is not expected to monitor the GST portal for notices, and any adjudication order passed without affording a physical hearing or proper offline notice in such circumstances is unsustainable. The Court set aside the order dated February 9, 2025, and directed the petitioner to submit its reply to the show cause notice within four weeks. Subsequently, a fresh order is to be passed after affording an opportunity of personal hearing, as expeditiously as possible, preferably within three months.

Key Issues

1. Whether the petitioner was obligated to visit the GST portal to receive show cause notices for the period April 2020 to March 2021, given that its GST registration was cancelled effective November 5, 2024, preceding the adjudication order dated February 9, 2025? (Question of law) 2. Whether the adjudication order dated February 9, 2025, passed without issuing any physical/offline notice to the petitioner, violates the principles of natural justice? (Question of mixed law and fact) Petitioner's contentions: The petitioner argued that since its GST registration was cancelled, it was not required to check the GST portal for electronic notices. Furthermore, no physical notice was served, thus violating the principles of natural justice. The petitioner relied on the fact that its registration was cancelled prior to the issuance of the notices and the adjudication order. Revenue's contentions: The revenue did not dispute that the petitioner's registration was cancelled. It also did not claim that any physical notice was served on the petitioner. The revenue did not present any arguments against the petitioner's claims regarding the lack of proper notice.