M/S Jaipal Singh vs. Commissioner SGST

Held

The Court held that the service of the Show Cause Notice, which was uploaded only on the GST portal after the petitioner's registration was cancelled, was not valid service under Section 169 of the CGST Act. The Court reasoned that the legislative intent behind Section 169 is to ensure effective communication of the notice to the assessee, and making it available on the portal is one of several permissible methods, not the exclusive one. The Court found that after cancellation of registration, the petitioner was not obligated to monitor the portal, and insisting on portal-based service imposed a duty not contemplated by law. This reasoning was supported by the precedent set in M/s Nulife Medical Store vs. Commissioner, State Goods and Service Tax, Commissionerate, Dehradun & another, which in turn considered decisions of the Allahabad High Court and the Supreme Court. Consequently, the impugned order dated 16.08.2024 was quashed. The Revenue was granted liberty to issue a fresh notice and adjudicate the matter in accordance with law, ensuring the petitioner is granted an opportunity of personal hearing as per Section 75(4) of the GST Act if desired.

Facts

The petitioner, M/s Jaipal Singh, challenged an order dated 16.08.2024 passed by the Assistant Commissioner, State Tax, Dehradun. This order confirmed a demand of Rs. 18,75,970/- in tax, Rs. 8,28,474/- in interest, and Rs. 95,226/- in penalty towards CGST/UKGST. The liability pertained to transactions that allegedly occurred before the petitioner's GST registration was cancelled effective 04.11.2019. The petitioner argued that after registration cancellation, notices should have been served through modes other than just uploading on the GST portal, as the firm was no longer expected to monitor it. The revenue did not dispute that the Show Cause Notice was served solely via the GST portal.

Key Issues

1. Whether the service of notices exclusively through the GST portal, after the cancellation of the petitioner's GST registration, constitutes valid service under Section 169 of the CGST Act? Petitioner's argument: The petitioner contended that once GST registration is cancelled, an assessee cannot be expected to regularly check the GST portal. Therefore, service of notices solely through portal upload is invalid, and alternative modes of service are mandatory. They relied on the judgment in M/s Nulife Medical Store vs. Commissioner, State Goods and Service Tax, Commissionerate, Dehradun & another, which held that portal-based service alone is insufficient after registration cancellation. Revenue's argument: The revenue did not dispute that the Show Cause Notice was served only by uploading it on the GST portal. They did not present any counter-argument regarding the validity of service in this specific context.