Satendra Singh vs. Union Of INDIA

Facts

The petitioner, Satendra Singh, filed a writ petition before the Patna High Court challenging an order dated 05.09.2024 passed by the State Tax Appellate Authority (respondent no. 6 and 7) which dismissed his appeal against the cancellation of his GST registration. The appeal was dismissed solely on the ground of limitation. The petitioner contended that he did not receive any physical copy or communication of the Show Cause Notice dated 08.07.2022 or the subsequent cancellation order. All communications were allegedly uploaded only on the GST portal, and the petitioner, due to a prolonged medical condition, had no knowledge of these uploads. This prevented him from responding to the show cause notice or taking timely action, leading to an ex parte cancellation of his registration. The respondents, particularly respondent no. 5, did not specifically deny these averments in their counter affidavit.

Held

The Court held that the impugned order cancelling the petitioner's GST registration and the subsequent appellate order dismissing his appeal suffered from a violation of statutory procedure and the principles of natural justice. The Court noted that the averments made by the petitioner regarding non-receipt of physical notice and his medical condition, which prevented him from accessing the GST portal, were not specifically denied by the respondents in their counter affidavit. Therefore, the Court found that the petitioner had not been provided with effective notice, and thus could not be faulted for non-response or delay. Relying on its previous decision in M/s Lord Vishnu Construction Pvt. Ltd. Vs. The Union of India and Others, the Court set aside both the appellate order and the order cancelling the registration. The petitioner was directed to submit his reply to the show cause notice within three weeks, and the Deputy Commissioner of State Tax, Siwan, was ordered to provide a hearing and pass a fresh order within four months.

Key Issues

1. Whether the cancellation of the petitioner's GST registration and the subsequent dismissal of his appeal by the appellate authority violated the principles of natural justice due to lack of effective notice to the petitioner? The petitioner argued that the cancellation of his registration and the dismissal of his appeal were illegal because he was not served with any physical copy of the show cause notice or the cancellation order. He claimed that all communications were uploaded to the GST portal, and due to a prolonged medical condition, he had no knowledge of these uploads. This prevented him from responding, leading to an ex parte cancellation. He relied on the fact that the respondents did not specifically deny these averments in their counter affidavit. The petitioner also cited the decision in M/s Lord Vishnu Construction Pvt. Ltd. Vs. The Union of India and Others in CWJC No. 5291 of 2024. The respondents (State and Union of India) did not file a specific counter to controvert the petitioner's claims regarding non-service of notice and his medical condition.