Service of GST notice by just uploading it on GST Portal on a cancelled GST Registration is not valid: High Court

Petitioner:

Petitioner had cancelled its GST Registration voluntarily in 2019, whereas the notice u/s 74 of the Act was given to it only by way of uploading the same on the GST Portal in subsequent year.

Petitioner submits that as he had already cancelled its registration voluntarily, it was not required to check the web portal.

Further ground has also been taken by the learned counsel for the petitioner with regard to the respondent proceeding on the basis of a Special Investigation Branch report (SIB report) behind the back of the petitioner without providing a copy of the same to the petitioner.

Judgement in favor of Petitioner:

Chief Justice D.Y. Chandrachud has elaborated on the principles of natural justice in State Bank of India and others v. Rajesh Agarwal and others. The relevant paragraph is delineated below:

“36. We need to bear in mind that the principles of natural justice are not mere legal formalities. They constitute substantive obligations that need to be followed by decision-making and adjudicating authorities. The principles of natural justice act as a guarantee against arbitrary action, both in terms of procedure and substance, by judicial, quasi-judicial, and administrative authorities. Two fundamental principles of natural justice are entrenched in Indian jurisprudence: (i) nemo judex in causa sua, which means that no person should be a judge in their own cause; and (ii) audi alteram partem, which means that a person affected by administrative, judicial or quasi-judicial action must be heard before a decision is taken. The courts generally favor interpretation of a statutory provision consistent with the principles of natural justice because it is presumed that the statutory authorities do not intend to contravene fundamental rights. Application of the said principles depends on the facts and circumstances of the case, express language and basic scheme of the statute under which the administrative power is exercised, the nature and purpose for which the power is conferred, and the final effect of the exercise of that power.”

The phrase, denoting "hear the other side," is emblematic of the sacrosanct right vested in individuals to be accorded a fair and impartial hearing before the adjudication of their rights or interests. 

High Court:

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Cancellation of GST Registration

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GST Registration

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