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Suman Overseas Vs U.O.I (Allahabad High Court)

Date: December 15, 2025

Court: High Court
Bench: Allahabad
Type: Writ Petition
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Subject Matter

GST Orders Quashed Due to Improper Service After Registration Cancellation, Violating Natural Justice

Summary

The High Court has quashed and set aside impugned orders, including notifications extending timelines for passing orders and assessment orders, primarily on the grounds of violation of principles of natural justice. The Court found that the show cause notice was improperly served only on the portal after the petitioner's registration was cancelled, without ensuring service via email or registered post.

Summary of Facts and Dispute:
  1. Impugned Action: The petitioner challenged Notification No. 56/2023-Central Tax dated 28.12.2023 and Notification No. 13/XI-2-24-9(47)/17.T.C.250-U.P.Act-1-2017-Order-(311)-2024 dated 07.02.2024, which extended the time period for passing orders for Financial Year 2018-19. Additionally, the petitioner challenged an order dated 24.04.2024 and another dated 18.08.2025, pertaining to scrutiny under Section 61 for Financial Year 2017-18 but projecting for 2018-19, arguing they were barred by limitation under Section 73.
  2. Petitioner's Argument: The petitioner contended that the notifications extending the time period were ultra-vires Section 168A, arbitrary, unreasonable, colourable, and violative of Articles 14, 265, and 279A of the Constitution. The impugned orders were argued to be time-barred under Section 73 of the CGST/SGST Act(s) and issued in violation of natural justice, as the show cause notice was served only on the portal after the cancellation of registration, without employing alternative methods like email or registered post.
  3. Core Question of Law: Whether the notifications extending the time period for passing orders for FY 2018-19 are valid under Section 168A, and whether the impugned orders, passed after the expiry of the limitation period under Section 73 and served solely on the portal after registration cancellation, violate the principles of natural justice.
Key Legal Issues & Findings:
Violation of Principles of Natural Justice in Service of Notice

The Court emphasized adherence to due process and fair hearing principles, consistent with established legal jurisprudence on natural justice.

  • Improper Service: The show cause notice, issued on 25.12.2023 (after the petitioner's registration was cancelled on 30.11.2018), was only uploaded on the portal, without being sent via email or registered post.
  • Duty of Authorities: After the cancellation of a taxpayer's registration, the authorities have a duty to ensure that notices are served through alternative, reliable means, such as email or registered post.
  • Consequence: Failure to effect proper service through appropriate channels, especially after registration cancellation, constitutes a clear violation of the principles of natural justice, rendering the subsequent proceedings and orders invalid.
Ruling:
  1. Outcome: The impugned orders dated 24.04.2024 and 18.08.2025, and by implication the notifications extending the timelines, are quashed and set aside.
  2. Directions: The authorities are directed to grant the petitioner the benefit of filing a reply and provide an opportunity of hearing once the said reply is filed.
  3. Liberty: The Revenue is at liberty to proceed with the matter after duly rectifying the procedural flaws by granting the petitioner an opportunity to file a reply and a proper hearing.

FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT

1. In the present case the writ petitioner makes the following prayers:-

“A-Issue appropriate writ, order or direction declaring the Notification No. 56/2023-Central Tax [5.0 No. 5483(E)/F.NO.CBIC-20013/7/2021- GST] dated 28.12.2023 (Annexure-1) issued by the respondent no. 3 under Section 168A of the Central Goods and Services Tax Act, 2017 and Notification No. 13/XI-2-24-9(47)/17.T.C.250-U.P.Act-1-2017-Order- (311)-2024 dated 07.02.2024 (Annexure-2) issued by respondent no. 4 under Section 168A of the U.P Goods and Services Tax Act, 2017, to the extent they extend time period for passing order for F.Y 2018-19, as ultra-vires Section 168A, arbitrary, unreasonable, colourable and violative of Article 14, 265 & 279A of the Constitution;

B-Issue appropriate writ, order or direction declaring the ratification of Notification No. 56/2023-Central Tax [S.O No. 5483(E)/F.NO.CBIC20013/7/2021-GST] dated 28.12.2023 by respondent no. 3 GST Council in its 53rd meeting held on 22.06.2024, as ultra-vires Section 168A of the CGST Act, 2017 and also arbitrary and hence violative of Article 14 of the Constitution;

C-Issue a writ, order or direction in the nature of certiorari quashing the impugned order dated 24.04.2024 (Annexure-5) pertaining to a scrutiny of return under section 61 for the Financial Year 2017-18 but projecting it for the period 2018-19, as the same was even otherwise barred by limitation, having been passed after the expiry of period specified under Section 73 of the CGST/SGST Act(s), 2017, which is also otherwise without jurisdiction, arbitrary, non-speaking and unreasoned;

E. Issue a writ, order or direction in the nature of certiorari quashing the impugned order dated 18/08/2025 passed by respondent no. 5 in furtherance to an illegal order pertaining to a scrutiny of return under section 61 for the Financial Year 2017-18 but projecting it for the period 2018-19, as the same was even otherwise barred by limitation, having been passed after the expiry of period specified under Section 73 of the CGST/SGST Act(s), 2017, which is also otherwise without jurisdiction, arbitrary, non-speaking and unreasoned. (Annexure-4)

2. Upon perusal of the documents, it appears that the registration of the petitioner was cancelled on 30.11.2018 and the present show cause notice was issued on 25.12.2023. The above show cause notice was only issued on the portal and was not issued by any other means to the petitioner.

3. In light of the same, we are of the view that after cancellation of the registration, the petitioner should have been served by way of E-Mail or by registered post. As the same was not done, we are of the view that the principles of natural justice has been violated. The impugned orders are accordingly quashed and set aside with the direction to the authorities to grant benefit to the petitioner to file a reply.

4. Opportunity of hearing must also be granted to the petitioner once the said reply is filed.

5. With the above directions, the writ petition is disposed of.