Court mandates fresh adjudication proceedings with proper physical notice following violation of natural justice principles.
In a significant ruling on March 13, 2026, the Allahabad High Court, comprising Justices Saumitra Dayal Singh and Vivek Saran, set aside an adjudication order under the U.P. Goods and Services Tax (GST) Act, 2017 due to improper service of notice. The case involved M/S Shri. Dewan Publications, whose original GST registration was canceled in 2019, yet they faced adjudication proceedings without receiving a mandatory physical notice.
The petitioner, M/S Shri. Dewan Publications, was originally registered under GSTIN/UIN: 09ADCFS7666R1ZZ, which was canceled on September 20, 2019. Despite obtaining a new registration and complying with tax obligations, a show cause notice for the fiscal year 2019-20 was issued electronically on May 30, 2024, against the canceled GSTIN. The petitioner claimed ignorance of the proceedings as they were not notified physically, a requirement under Section 169(1)(a)(b) of the U.P.G.S.T. Act, 2017.
The court found that the failure to serve a physical notice violated the principles of natural justice, as the petitioner was not obligated to check the Common Portal after their registration was canceled. Citing the case of M/S Bambino Agro Industries Ltd. v. State of Uttar Pradesh, the court emphasized the necessity of serving physical notices in such circumstances.
The adjudication order dated August 29, 2024, was declared void, and the case was remitted for fresh proceedings. The court directed the issuance of a physical notice within ten days, allowing the petitioner two weeks to respond. The court mandated that the subsequent proceedings be concluded within two months, ensuring the petitioner's right to be heard is upheld.
The decision underscores the importance of adhering to procedural requirements under GST laws, particularly regarding the service of notices, to protect the statutory rights of individuals and uphold the principles of natural justice.
Bottom Line:
Adjudication proceedings under GST law require proper service of notice, particularly when the original GST registration is canceled. A failure to serve notice physically, as prescribed under Section 169(1)(a)(b) of the U.P.G.S.T. Act, 2017, constitutes a violation of natural justice principles.
Statutory provision(s): U.P.G.S.T. Act, 2017, Sections 75(4), 169(1)(a)(b)
