HC Set-Aside Order Passed Under Section 73 as SCN Was Uploaded on GSTN Portal After Cancellation of Registration

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In a significant ruling on the procedural validity of GST adjudication, the Allahabad High Court held that uploading a show cause notice (SCN) under Section 73 of the CGST Act, 2017 on the GSTN portal after cancellation of registration does not amount to valid service of notice. The Court emphasized that once the registration of a taxpayer is cancelled, the taxpayer loses access to the portal, and hence, communication of such notice through the portal becomes ineffective. Consequently, any adjudication proceedings based on such an invalidly served notice would be vitiated for violation of the principles of natural justice. This decision reinforces the necessity of proper service of notices before passing orders under Section 73 of the GST law.

Case Details:

Citation: [2025] 179 taxmann 107 (Allahabad)
Date of Order: 19 September 2025
Bench: Allahabad High Court
Date Reported: 27 October 2025
Area of Law: Goods and Services Tax (GST)

Facts of the Case

  • The petitioner was a registered person under the CGST/UPGST Act.
  • The petitioner’s GST registration had been cancelled prior to the initiation of the proceedings under Section 73 of the CGST Act.
  • Subsequently, the show cause notice (SCN) under Section 73 was uploaded on the GSTN portal.
  • The petitioner contended that since the registration had already been cancelled, the SCN uploaded on the portal was never communicated to them, resulting in violation of principles of natural justice.
  • Consequently, the adjudicating authority proceeded ex parte and passed an order of demand under Section 73.

Issue

Whether the order passed under Section 73 of the CGST Act is sustainable when the SCN was uploaded on the GST portal after cancellation of the taxpayer’s registration and not effectively served.

Held

  • The Allahabad High Court observed that once a GST registration is cancelled, the taxpayer loses access to the GSTN portal.
  • Therefore, uploading the SCN on the portal does not amount to valid service of notice under Section 169 of the CGST Act.
  • The Court held that effective communication of the SCN is mandatory before any adjudication under Section 73.
  • Since the SCN was not properly served, the entire proceedings and order under Section 73 were vitiated.

Decision

  • The High Court set aside the order passed under Section 73.

  • The matter was remanded back to the proper officer to issue a fresh notice in accordance with law after ensuring valid service on the petitioner.

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