M/s Envicon Technologies India Pvt. Ltd. v. State of U.P. & Anr.
Allahabad High Court, Writ Tax No. 61 of 2025, Order dated 10.01.2025
Category of Dispute: Cancellation of Registration / Principles of Natural Justice
Relevant Sections: Section 29, Section 75(4) & 75(5), CGST/UPGST Act, 2017; Rule 22, CGST Rules, 2017
Facts (Para 1–3)
The petitioner, M/s Envicon Technologies India Pvt. Ltd., had its GST registration cancelled by the State Tax Authorities on 04.10.2019 with retrospective effect from 24.09.2019. The Revenue proceeded to issue electronic show cause notices for the period 2018–19 through the GST portal. However, since the petitioner’s registration had already been cancelled, it was not possible for the petitioner to access the portal. Importantly, no physical or offline notices were served. The proceedings culminated in an adjudication order dated 29.04.2024 creating tax demand. The petitioner challenged this on the ground of denial of natural justice.
Questions before the Court
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Whether a taxpayer whose registration was already cancelled could be deemed to have constructive notice of show cause notices issued only through the GST portal?
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Whether failure to serve physical notice rendered the adjudication order void for violation of natural justice?
Observations (Para 2–5)
The Court observed that once the registration was cancelled, there was no obligation on the petitioner to access the GST portal. Hence, electronic service of notice became ineffective. The Revenue never issued or served any physical notice prior to passing the order dated 29.04.2024. Since the rules of natural justice form the bedrock of adjudication under GST, non-service of notice deprived the assessee of opportunity to present its case. The Court also emphasized that relegating the petitioner to an appellate remedy would serve no purpose when the foundational defect of absence of notice was evident.
Judgement (Para 5–6)
The High Court set aside the order dated 29.04.2024 on the ground of violation of natural justice. It allowed the petitioner to treat the quashed order itself as a show cause notice and submit its reply within four weeks. The authority was directed to pass a fresh order after affording personal hearing within three months. The writ petition was thus disposed of.
Table of Cases Referred
| Case | Citation | Verdict / Ratio |
|---|---|---|
| None specifically cited | – | The Court relied on general principles of natural justice and statutory provisions without citing precedents. |
Between Fine Lines
This ruling highlights that once GST registration is cancelled, authorities cannot rely solely on electronic service of notices through the GST portal. They must ensure service of physical notices to meet the requirements of natural justice. For trade and industry, this ensures that tax demands raised after cancellation of registration cannot be sustained without proper communication.
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