Abhay Ranjan Sarkar Security Agency vs. Deputy Commissioner (State Tax) And Another

Facts

The petitioner, Abhay Ranjan Sarkar Security Agency, had its GST registration under the UPGST Act, 2017, cancelled on 01.09.2023, effective from 21.07.2023. The revenue did not contend that this registration was ever revived or that the petitioner sought revival. Consequently, the petitioner argued it was not obligated to check the GST portal for show cause notices issued for the period 2019-20, which preceded an adjudication order dated 30.07.2024. The revenue also did not claim to have issued any physical or offline notice to the petitioner before passing the impugned order. The High Court noted these peculiar facts.

Held

The Court held that given the cancellation of the petitioner's GST registration effective 21.07.2023, the petitioner was not obligated to visit the GST portal to receive show cause notices for the period 2019-20, which preceded the adjudication order dated 30.07.2024. The Court found that the revenue did not establish that any physical/offline notice was issued or served on the petitioner before the impugned order was passed. Therefore, the essential requirement of the rules of natural justice had not been fulfilled. The Court set aside the adjudication order dated 30.07.2024. The petitioner was directed to treat the said order as a notice and submit its reply within four weeks. Subsequently, a fresh order was to be passed after affording an opportunity of personal hearing, expeditiously and preferably within three months. The ratio decidendi is that a taxpayer whose registration is cancelled is not obligated to check the GST portal for notices pertaining to periods prior to cancellation if no physical notice is served, and any order passed without affording a personal hearing violates natural justice.

Key Issues

1. Whether the petitioner was obligated to visit the GST portal to receive show cause notices for the period 2019-20, given that its GST registration was cancelled effective 21.07.2023, preceding the adjudication order dated 30.07.2024? (Question of law) 2. Whether the adjudication order dated 30.07.2024 is liable to be set aside for non-compliance with the principles of natural justice, specifically the lack of issuance of physical/offline notice to the petitioner before its passing? Petitioner's Arguments: The petitioner contended that since its GST registration was cancelled prior to the issuance of show cause notices for 2019-20, it was not obligated to monitor the GST portal for such notices. Furthermore, the absence of any physical or offline notice before the adjudication order violated the rules of natural justice. Revenue's Arguments: The revenue did not dispute the cancellation of the petitioner's registration or its non-revival. It also did not claim to have issued any physical/offline notice to the petitioner prior to the impugned order.