Case Title: M/s Rashid Husain v. State of U.P. and Another
Court: High Court of Judicature at Allahabad (Chief Justice’s Court)
Petition No.: Writ Tax No. 1329 of 2025
Date of Judgement: 05.04.2025
Category of Dispute: Procedural Violation – Natural Justice
Relevant Sections: Section 29 and 75 of CGST/UPGST Act, 2017; Principles of Natural Justice
Bench: Hon’ble Chief Justice Arun Bhansali & Hon’ble Justice Kshitij Shailendra
Facts of the Case
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[Para 1] The petitioner’s GST registration was cancelled on 09.12.2021 with retrospective effect from 30.11.2021.
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[Para 1] It was not claimed by the Revenue that the said registration had ever been revived or that the petitioner sought revival.
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[Para 2] Despite cancellation, show cause notices for the period 2018–19 were issued electronically, culminating in an adjudication order dated 27.04.2024.
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[Para 3] The department did not serve any physical or offline notice to the petitioner before passing the said order.
Question(s) in Consideration
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[Para 2-3] Whether an adjudication order under the GST law is valid when show cause notice is served only via the GST portal after cancellation of registration, without any physical service or proper opportunity of hearing?
Observation of the Court
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[Para 2] Since the registration had been cancelled long before issuance of SCN and no revival was sought, the petitioner was not under an obligation to monitor the GST portal.
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[Para 3] No physical notice or service of SCN was effected by the Revenue prior to the passing of the order.
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[Para 5] The failure to comply with the essential requirement of natural justice—namely, fair service and opportunity to be heard—rendered the adjudication procedurally flawed.
Judgement of the Court
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[Para 5] The adjudication order dated 27.04.2024 was set aside.
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[Para 5] The petitioner was permitted to submit a reply to the SCN within four weeks.
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[Para 5] A fresh order shall be passed only after affording personal hearing, preferably within three months.
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[Para 6] Writ petition was accordingly disposed of.
Between Fine Lines
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If a taxpayer’s GST registration is cancelled, they cannot be expected to monitor the portal.
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Natural justice requires actual service of notice if the portal is inaccessible.
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A GST order without proper notice is voidable.
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Authorities must afford a real opportunity to respond before passing orders.
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The Court emphasized that procedural fairness trumps rigid technicalities.
Summary of Referred Cases
No precedent cases were cited or referred to in the judgement by either side.
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