Ms Elegance Engineering vs. Commissioner State Goods And Services Tax Commissionerate

Held

The Court disposed of the writ petitions in terms of the judgment dated 12.02.2026 rendered in WPMB No. 1065 of 2025. This implies that the Court found merit in the petitioner's contention regarding the insufficiency of service by mere uploading on the GST portal, aligning with the precedent set in the cited case. The reasoning is based on the principle that statutory modes of service must be adhered to, especially when the GST registration is cancelled. The Court, however, granted liberty to the Competent Authority to proceed from the stage of the show cause notice. This means the assessment orders and recovery notices, which were based on the allegedly invalid service, are effectively set aside, but the underlying tax liability can still be pursued through proper procedure. The ratio decidendi is that statutory compliance for service of notices is mandatory, and non-compliance vitiates subsequent proceedings. The operative direction is to allow the Competent Authority to restart the process from the show cause notice stage.

Facts

The petitioner, in multiple writ petitions (WPMB/9/2026, WPMB/15/2026, etc.), sought to quash assessment orders dated 12.08.2024, 17.10.2025, and 26.12.2024, along with show cause notices dated 21.05.2024, 18.01.2025, and 25.10.2024, and a recovery notice/bank attachment order dated 06.08.2025. The petitioner also sought a direction to lift the attachment on their bank account and to conduct a consolidated assessment for FY 2019-20. The core of the petitioner's grievance was that the notices and orders were not served through prescribed modes under Section 169 of the Uttarakhand GST Act but were merely uploaded on the GST portal, which they argued was insufficient. The revenue, represented by the State Counsel, agreed to proceed from the stage of the show cause notice if the petitions were decided based on a previous judgment.

Key Issues

1. Whether the uploading of assessment orders and show cause notices on the GST portal constitutes valid service under Section 169 of the Uttarakhand GST Act, particularly after cancellation of GST registration? (Question of law) Petitioner's Argument: The petitioner contended that mere uploading of notices on the GST portal is insufficient service. They relied on a coordinate bench's decision in WPMB No. 1065 of 2025, which held that after cancellation of GST registration, service must be effected through alternative modes provided under Section 169 of the Uttarakhand GST Act. Therefore, the present petitions could be decided in terms of that judgment. Revenue's Argument: The State Counsel submitted that if the writ petition were decided in terms of the judgment in WPMB No. 1065 of 2025, the Competent Authority should be permitted to recommence proceedings from the stage of the show cause notice, asserting that these notices were validly issued under Sections 63, 73 & 74 of the Uttarakhand GST Act.