Allahabad HC quashes Section 74 fraud proceeding where notice was uploaded only on GST portal after registration cancellation.
Portal-Only Notice After Cancellation Violates Natural Justice
The Allahabad High Court quashed proceedings initiated under Section 74 of the CGST Act for alleged fraud, holding that uploading a notice solely on the GST portal after cancellation of registration violates natural justice.
The petitioner had no access to the portal following cancellation, and no physical or email communication was made. The Court ruled that reliance on electronic mode alone, without proof of actual or deemed service, cannot constitute valid service of process.
When a registered person loses access to their account, the department must adopt alternative modes of service to ensure fairness.
This decision underscores the need for tax authorities to ensure actual notice in post-cancellation scenarios. Practitioners should raise service issues in contested proceedings and seek quashing of orders based on defective notice.
