Kesarwani Enterprises Vs Commercial Tax Officer
Date: July 6, 2025
Subject Matter
Physical Notice Mandatory After GST Registration Cancellation, Electronic Service Insufficient
Summary
The petitioner's GST registration was canceled on January 2, 2021. The revenue authorities subsequently issued an adjudication order dated April 3, 2024, for the tax period of April 2018 to March 2019. The petitioner challenged this order, arguing that since the registration was canceled, they were not obligated to monitor the GST portal for electronic notices.
The court noted that it was undisputed that the petitioner's registration was canceled and was never revived. Furthermore, the revenue authorities did not claim to have issued any physical or offline notice to the petitioner before passing the adjudication order. This meant that a fundamental requirement of natural justice—the right to be heard after receiving proper notice—had not been fulfilled.
The court found that, under these "peculiar facts," there was no reason to keep the petition pending or to compel the petitioner to use an alternative remedy, as the lack of notice was a clear violation.
The court set aside the adjudication order dated April 3, 2024. The petitioner is granted four weeks to submit a reply to the show cause notice. Subject to this compliance, the revenue authorities must pass a fresh order after providing the petitioner with an opportunity for a personal hearing. This process is to be completed as expeditiously as possible, preferably within three months.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Having heard Sri Nitin Kumar Kesarwani, learned counsel for the petitioner and Sri Ankur Agarwal, learned Standing Counsel for the respondents, it remains undisputed that the petitioner’s registration under the UPGST Act, 2017 was cancelled on 02.01.2021 w.e.f. 02.01.2021. It is not the case of the revenue that the said registration has ever been revived or that the petitioner ever sought revival of that registration.
2. In view of the above, it does merit acceptance that the petitioner was not obligated to visit the GST portal to receive the show cause notices that may have been issued to the petitioner for April, 2018 – March, 2019 through e-mode, preceding the adjudication order dated 03.04.2024 passed in pursuance thereto.
3. It is also not the case of the revenue that any physical/offline notice was issued to or served on the petitioner before the impugned order came to be passed.
4. In view of peculiar facts noted above, no useful purpose may be served in keeping the petition pending or calling counter affidavit at this stage or to relegate the present petitioner to the forum of alternative remedy.
5. Since essential requirement of rules of natural justice has remained to be fulfilled, we set aside the order dated 03.04.2024. The petitioner may submit its reply to the show cause notice within a period of four weeks from today. Subject to such compliance by the petitioner, fresh order may be passed after affording opportunity of personal hearing, as expeditiously as possible, preferably within a period of three months therefrom.
6. Writ petition is, accordingly, disposed of.