After Cancellation of GST Registration, Tax Payer Is Not Supposed to Check GST Portal for Notices: High Court Ruling

Facts of the Case

1. GST Registration Cancelled:
   • The petitioner’s GST registration was cancelled on 19 October 2020.
   • After cancellation, the petitioner did not conduct any business.
2. Show Cause Notice:
   • A notice was issued by the tax department, but it was only uploaded on the GST portal.
   • The petitioner claimed that since his registration was already cancelled, he was not required to keep checking the GST portal.
3. Orders Passed:
   • Despite cancellation, the Assistant Commissioner (State Tax, Ghaziabad) passed orders dated 23 April 2024 and 19 June 2025, raising demands under Section 73 and initiating recovery under Section 79(1)(c).

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⚖️ Court’s Reasoning

1. Duty to Check Portal:
   • Once a taxpayer’s GST registration is cancelled, he is no longer required to monitor the GST portal for notices.
   • The department should have served notices through alternative means (such as physical delivery, email, or other proper service methods).
2. Principle of Natural Justice Violated:
   • By only uploading the notice on the portal (without ensuring actual communication), the petitioner was deprived of an opportunity to respond.
   • This goes against the principle of natural justice (every party should get a fair chance to be heard).
3. Precedent Relied Upon:
   • The Court relied on its earlier ruling in M/s Katyal Industries v. State of U.P. where it was held that service of notices only on the portal is not sufficient when registration is cancelled.

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🏛️ Court’s Decision

• The impugned orders dated 23.04.2024 and 19.06.2025 were quashed and set aside.
• However, the department was given liberty to issue fresh notices properly and then proceed according to law.
• The writ petition was thus disposed of with this direction.

Case Background

• Petitioner (Applicant): Sr Interiors
• Respondents: State of U.P. & others
• Court: Allahabad High Court
• Judges: Justice Shekhar B. Saraf & Justice Praveen Kumar Giri
• Date: 9 September 2025
• Issue: The petitioner challenged GST demand and recovery orders under Section 73 & others (tax not paid/short paid) and Section 79(1)(c) (recovery of tax) of the UP GST Act, 2017.

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🔑 Crux (in simple words)

• If a taxpayer’s GST registration is cancelled, the tax department cannot expect him to keep checking the GST portal.
• Notices must be served in a proper and effective manner.
• Uploading notices only on the portal after cancellation is a defective service of notice.
• Since natural justice was violated, the Court struck down the demand and recovery orders.
• The department, however, is free to start proceedings again — but only after serving notice properly.

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👉 In short: The Court protected the taxpayer’s right to fair hearing and reminded the GST department that cancellation of registration changes how notices should be served.

Practical Takeaways from the Judgment

✅ For Taxpayers

1. After GST cancellation, you don’t need to monitor the GST portal:
   • If your registration is cancelled, you are not under obligation to check notices uploaded on the portal.
   • If the department wants to proceed against you, they must serve you through other valid means.
2. Always keep your contact details updated:
   • Even if registration is cancelled, make sure your email, phone, and address in the GST records are correct.
   • This way, if any notice is served by alternate methods, you’ll receive it.
3. Use the “natural justice” argument:
   • If an order is passed without you actually receiving the notice, you can challenge it by citing violation of natural justice.
4. But stay alert:
   • Though you aren’t legally required to check the portal post-cancellation, it’s still wise to occasionally check it, especially if you are dealing with pending tax matters.

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✅ For GST Officers

1. Don’t rely only on portal uploads when registration is cancelled:
   • Service of notice must be meaningful.
   • Uploading on the portal is not enough — officers should also serve by post, email, or physical delivery.
2. Follow principles of natural justice:
   • Ensure that the taxpayer has a fair chance to reply.
   • Orders passed without effective notice are at risk of being struck down by courts.
3. Learn from precedents:
   • Courts (including this one in M/s Katyal Industries and now Sr Interiors) have consistently held that portal-only service is not valid after cancellation.
4. Proceed afresh if set aside:
   • When such orders are quashed, officers still have the liberty to issue a fresh notice properly and continue the proceedings lawfully.

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⚖️ Broader Impact of the Case

• This case strengthens taxpayer rights under GST by ensuring that cancelled taxpayers are not unfairly burdened with portal-only notices.
• It also guides the tax administration to improve service methods and avoid technical-only communication.
• The ruling balances fairness: it protects the taxpayer but still allows the department to recover dues — provided they follow proper legal procedure.

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👉 Bottom line:
The judgment is a reminder that “procedure is the backbone of justice”. Even if the department is right on tax, if they fail in proper service of notice, their orders won’t stand.