Court directs fresh adjudication with physical service of notices following cancellation of petitioner's GST registration, emphasizing fair opportunity to respond and cross-examine witnesses.
In a significant judgment delivered on October 6, 2026, the Allahabad High Court (Division Bench comprising Justices Saumitra Dayal Singh and Swarupama Chaturvedi) quashed an ex parte adjudication order passed under Section 74 of the Uttar Pradesh GST Act, 2017. The petitioner, M/s. Manoj Kumar Yadav, had challenged the order dated March 28, 2026, which was passed without the petitioner's knowledge because the show-cause notice was served solely through the GST Common Portal.
The petitioner's GST registration had been cancelled on November 21, 2020. Despite the cancellation, a show-cause notice was issued electronically on September 30, 2025, almost five years later, initiating adjudication proceedings. The petitioner contended that due to the cancellation, he was disabled from accessing the Common Portal and remained unaware of the proceedings, thereby rendering the adjudication order ex parte.
The Court observed that the Commissioner of Commercial Tax, U.P., had issued a Circular on May 7, 2025, mandating subordinate authorities to ensure physical service of notices in adjudication proceedings initiated after the cancellation of GST registration. This instruction was grounded in practical wisdom, recognizing that a person whose registration has been cancelled may not be obligated or able to monitor electronic communications through the Common Portal.
The Court held that service of the show-cause notice solely through electronic means was inadequate under the circumstances and set aside the impugned adjudication order. It directed that the petitioner be given an opportunity to file a final reply within two weeks and, if required, to request cross-examination of witnesses or supply of documents relied upon during the proceedings. The adjudicating authority must then fix a personal hearing date, providing at least 15 days' advance notice, and pass a reasoned order within one month thereafter, with the entire process to be completed by December 31, 2026.
This ruling reinforces the principle of natural justice by ensuring that GST adjudication proceedings, particularly after cancellation of registration, must include proper notice mechanisms to avoid unfair ex parte orders.
Bottom Line:
GST - Adjudication proceedings initiated after cancellation of registration - Service of show-cause notice only through Common Portal is insufficient where registration had already been cancelled - Assessee may remain unaware of proceedings - Ex parte adjudication order set aside and matter remanded for fresh adjudication after granting opportunity to file reply and seek cross-examination/documents.
Statutory provision(s):
U.P. GST Act, 2017 Section 74
Manoj Kumar Yadav v. State of U.P., (Allahabad)(DB) : Law Finder Doc Id # 2996379
