Case Title: M/s Kanhaiya Traders v. State of U.P. and Another
Court: High Court of Judicature at Allahabad (Chief Justice’s Court)
Petition No.: Writ Tax No. 2292 of 2025
Date of Judgment: 16.05.2025
Relevant Section: Section 122 of the CGST Act, 2017
Category of Dispute: Natural Justice – Non-service of Notice
Coram: Hon’ble Chief Justice Arun Bhansali, Hon’ble Justice Kshitij Shailendra
Facts of the Case
[Para 1]
The petitioner, M/s Kanhaiya Traders, challenged the adjudication order dated 13.06.2024 passed under Section 122 of the CGST Act. The petitioner’s GST registration had already been cancelled w.e.f. 28.03.2024, and there was no attempt by the petitioner to revive it.
[Para 2]
Despite the cancellation, a show cause notice for the year 2018–19 was allegedly issued via e-mode (GST portal) without any revival of the registration.
[Para 3]
No physical/offline notice was issued or served upon the petitioner before the order dated 13.06.2024 was passed.
Question(s) in Consideration
[Para 2, 3]
- Whether a notice issued via e-mode on a cancelled GST registration fulfills the requirement of natural justice?
- Whether adjudication under Section 122 of the CGST Act can be sustained in absence of proper service of notice?
Observation of the Court
[Para 2 & 5]
- Since the registration was cancelled and never revived, the petitioner was under no obligation to check for notices on the GST portal.
- The absence of any physical/offline notice or personal hearing before passing the order constituted a violation of the principles of natural justice.
Judgment of the Court
[Para 5]
- The impugned order dated 13.06.2024 passed under Section 122 of the CGST Act was quashed.
- The order itself shall be treated as a fresh show cause notice, and the petitioner is allowed to submit its reply within four weeks.
- Post submission, the authority shall pass a fresh order after granting a personal hearing within three months.
- The writ petition was disposed of accordingly.
Between Fine Lines
- Once a GST registration is cancelled, the taxpayer cannot be expected to monitor the GST portal.
- Serving notices only through e-mode in such cases violates natural justice.
- Adjudication orders passed without notice or hearing are liable to be set aside.
- The court ensured compliance by allowing a fresh reply and mandating personal hearing.
- Procedural fairness must be followed even in post-cancellation proceedings.
Summary of Referred Cases
No external case law was cited or referred to in the judgment.
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