M/S E-Coat Mobile Protection vs. Office Of The Assistant Commissioner Of Commercial Taxes
Original PDF →Facts
The petitioner, M/s. E-Coat Mobile Protection, represented by its proprietor, filed a writ petition challenging an order dated 27.02.2025, passed by the Assistant Commissioner of Commercial Taxes (Respondent) under Section 73 of the GST Act. The impugned order pertains to the financial year 2020-21. The petitioner's grievance is that the order was passed without proper notice. The petitioner stated that they had stopped their business, cancelled their GST registration, and consequently lost access to the GST portal, which was the method of communication used by the respondent. The petitioner argued that since the registration was cancelled, notices should have been served via Registered Post Acknowledgement Due, not email or portal communication.
Held
The Court allowed the writ petition. It held that a notice cannot be served by email when a GST registration has been cancelled. Instead, service must be effected via Registered Post Acknowledgement Due. Since this procedure was not followed by the respondent, the Court concluded that service was not properly effected on the petitioner. Consequently, the impugned order dated 27.02.2025, passed by the Respondent, was set aside by issuing a writ of certiorari. The Court further permitted the petitioner to submit a reply to the show-cause notice by 2:30 PM on 5.8.2025, appearing before the respondent. The respondent was directed to consider this reply and pass orders in accordance with the law. No issue was expressly left undecided.
Key Issues
1. Whether the impugned order passed under Section 73 of the GST Act, dated 27.02.2025, is liable to be quashed and set aside on the grounds of non-service of proper notice to the petitioner for the financial year 2020-21? The Petitioner contended that the impugned order was passed without issuing a proper notice. They asserted that their business had ceased, their GST registration was cancelled, and they no longer had access to the GST portal. Therefore, any notice served through the portal or email was invalid. The Petitioner argued that in cases of cancelled registration, service of notice must be effected through Registered Post Acknowledgement Due, which was not done. Consequently, the Petitioner claimed that no valid service of notice was effected upon them, rendering the subsequent order illegal. The Respondent did not record any specific arguments in the judgment regarding the service of notice or the validity of the impugned order.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER
The petitioner is before this Court seeking for the following reliefs; i. Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner's case and after examining the legality and validity thereof be pleased to quash and set aside the impugned order passed under section 73 of the Act dated 27.02.2025 in DIN & Order No: 47/2024-25 and Τ. No.4280/2024-25 [ANNEXURE- E] passed by the Respondent for the Financial Year 2020-21, and,
ii. A Writ of Mandamus or a Writ in the nature of Mandamus, or any other appropriate Writ, Order or Direction under Article 226 of the Constitution of India ordering and directing the Respondents by themselves, their subordinate, servants and agents to withdraw and cancel the impugned order passed under section 73 of the Act dated 27.02.2025 in DIN & Order No: 47/2024-25 and T. No.4280/2024-25 [ANNEXURE-E] passed by the Respondent for the Financial Year 2020-21, and,
iii. A Writ of Prohibition or a Writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of the Constitution of India prohibiting and restraining the Respondents by themselves, their subordinate, servants and agents from taking any action in furtherance or consequent impugned order passed under section 73 of the Act dated 27.02.2025 in DIN & Order No: 47/2024-25 and T. No.4280/2024-25 HC-KAR NC: 2025:KHC:26488 [ANNEXURE–E] passed by the Respondent for the Financial Year 2020-21, and iv. Grant the interim relief in terms of prayer (ii) above, and v. Issue such other order, writ or direction as this Hon'ble Court deems fit; and vi. Direct the Respondents to pay the costs of this Writ Petition.”
The grievance of the petitioner is that the impugned orders were passed without notice being issued to the petitioner in as much as the petitioner was not using the GST portal, as he had stopped his business and the registration was got cancelled and thereafter the petitioner did not have access to the said portal.
When a registration is cancelled, a notice cannot be served by way of email but would have to be served by way of Registered Post Acknowledgement Due. The same not having been done, I am of the considered opinion that a service held to have been affected on the petitioner. Hence, I pass the following; ORDER i. The writ petition is allowed. HC-KAR NC: 2025:KHC:26488 ii. A certiorari is issued, order dated 27.02.2025 in DIN & Order No: 47/2024-25 and Τ. No.4280/2024-25 passed by Respondent at Annexure-E is hereby set aside. iii. The petitioner is permitted to reply to the show- cause notice which reply shall be so submitted without requirement of any further notice by 2:30 PM on 5.8.2025 by the petitioner appearing before respondent. iv. Respondent to consider the said reply and pass orders in accordance with law. (SURAJ GOVINDARAJ) JUDGE
SR List No.: 1 Sl No.: 52
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.