Patna High Court
M/S Samadhan Seva SamitiversusThe Union of India
- Decided
- Disposal
- ALLOWED
Holding
The cancellation order is set aside because the show‑cause notice was not served by the two modes mandated under Section 169, rendering the order violative of natural justice.
Summary
The petitioner, a society registered under the Society Registration Act, 1860, sought relief against the cancellation of its GST registration by the State Tax authorities. It alleged that the show‑cause notice was only uploaded on the department portal and not served by at least two modes as required under Section 169 of the CGST/BGST Act, 2017, violating natural justice. The court noted that prior decisions, particularly M/s. Shree Shyam Trading Co. v. Union of India (CWJC No.5661 of 2025), held that mere portal upload is insufficient notice. Finding that the notice was not properly served, the court held the cancellation order to be an ex‑parte, non‑speaking order and set it aside. The court also directed the department to issue a corrigendum and to comply with Sections 169 and 75(4) before taking any fresh action. The writ application was allowed in the reliefs sought.
Issues considered
- Whether the show‑cause notice uploaded only on the common portal satisfies the notice requirement under Section 169 of the CGST/BGST Act, 2017.
- Whether the cancellation of GST registration without proper service of notice violates the principles of natural justice.
- Whether the appellate authority erred in dismissing the petitioner's appeal on the ground of limitation without addressing the procedural defect in the cancellation order.
Legislation cited
- Central Goods and Services Tax Act, 2017 (CGST Act) / Bihar Goods and Services Tax Act, 2017 (BGST Act) — s. 169, 75(4)
- Societies Registration Act, 1860
Subjects
- GST registration
- show cause notice
- natural justice
- Section 169 CGST Act
- ex‑parte order
- certiorari
- mandamus
- limitation
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.945 of 2026
======================================================
M/S Samadhan Seva Samiti having its Registered Office at- I.D/2016,ID/206,
G.D Mishra Path, New Patliputra Colony, Patna, through its Secretary, Mr.
Atul Shrestha, aged about 54 years, S/o Murari Mohan Prasad Diwan.
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Ministry of Finance, Department
of Revenue, having its office at Room No. 46, North Block, P.O. and P.S.
North Block, New Delhi- 110001.
2. The Commissioner, Central GST and Central Excise, Patna- II.
3. The State of Bihar through Commissioner, BGST, Kar Bhawan, Patna.
4. The Joint Commissioner of State Tax, Patna Central Division, District-
Patna.
5. Assistant Commissioner of State Tax, Patna Central Division, District-
Patna.
6. Additional Commissioner (Appeal), Patna West Division, Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Anurag Saurav, Advocate
Mr. Abhishek Kumar, Advocate
For the State : Mr. Vivek Prasad, GP-7
Mr. Sanjay Kumar, AC to GP-7
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE MR. JUSTICE KUMAR MANISH
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
3 23-06-2026 Heard learned counsel for the petitioner and learned
GP-7 for the State.
2. Petitioner in the present writ application is
seeking the following reliefs:-
"i. For Issuance of Writ in the nature of Certiorari
for setting aside order dated 25.07.2025 passed by
Additional Commissioner (Appeal), Patna West
Patna High Court CWJC No.945 of 2026(3) dt.23-06-2026
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Division, Patna in Appeal Case No. :
AD100723003083W whereby and where under the
Appellate Authority dismissed the appeal filed by
the petitioner on the ground of limitation.
ii. For Issuance of an appropriate writ/ order/
direction for setting aside order bearing reference
no. ZA100921095672K Dated: 23.09.2021, passed
by Joint Commissioner of State Tax, Patna Central
Division, Patna, whereby and where under
respondent authority proceeded ex-parte and
without providing an opportunity of hearing to the
petitioner Cancelled the GST Registration of the
petitioner, Whereas there is no pending tax amount
against the petitioner and Impugned Order does not
state about the reason for cancellation of
Registration and the said order is a non speaking
order passed in cryptic manner.
iii. For Issuance of Writ in the nature of Mandamus
directing the respondent authority to restore the
GST Registration of the Petitioner after revocation
of cancellation of registration with immediate
effect, as the petitioner had already furnished the
pending returns of previous years and further
undertake to filed any Pending Return or make
payment of any pending tax, if any, assessed by
respondent authority within Fifteen Days from the
date of the Order of this Hon'ble Court.
iv. For issuance of an appropriate Writ(s), order(s),
and/or direction(s), as Your Lordships may deem fit
and proper in the facts and circumstances of this
case in the interest of justice."
3. It is the case of the petitioner that it is a Society
Patna High Court CWJC No.945 of 2026(3) dt.23-06-2026
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registered under Society Registration Act, 1860 and is having
its offices for the gain in the State of Bihar. The petitioner has
obtained registration under the Bihar Goods and Service Tax
Act, 2017 (hereinafter referred to as the 'BGST Act, 2017').
The petitioner claims to have furnished the annual as well as
monthly returns through the Accountant. However, due to
some personal health issues, there was some delay in filing of
the quarterly return i.e. GSTR-3B and GSTR-1.
4. It is the case of the petitioner that the respondent
issued a show cause notice in form GST-REG-17/31 to the
petitioner by uploading a show cause notice on the web portal
of the department and the petitioner was directed to submit
show cause reply within a period of seven days, failing which
the registration of the petitioner was liable to be cancelled.
5. Learned counsel submits that the show cause
notice was not sent to the petitioner on its e-mail or the
official address and the same was uploaded by the respondent
authorities only on the web portal of the department.
6. This writ application was taken up for
consideration on 23.04.2026. After briefly taking note of the
contentions of learned counsel for the petitioner, this Court
directed learned GP-7 to file counter affidavit on behalf of the
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respondent nos.3 to 6 and the matter was ordered to be listed
after four weeks.
7. Today, Mr. Vivek Prasad, learned GP-7 submits
that he has not filed counter affidavit but has sought
instruction from the department. It is an admitted position that
in this case the notice to show cause was uploaded on the
common portal under the heading "Additional Document and
Order." Learned counsel submits that although Section 169 of
the CGST/BGST Act, 2017 talks of notice by uploading the
same on the common portal, but the Hon'ble Division Bench
of this Court has consistently held that the notice uploaded
under the heading "Additional Notice and Order" would not
be a sufficient compliance with the principles of natural
justice. Referring to the judgment of this Court in the case of
M/s. Shree Shyam Trading Co. vs. The Union of India &
Others decided on 09.07.2025 (CWJC No.5661 of 2025),
learned counsel submits that this Court has held that merely
uploading the notice on a Portal would not suffice. It is
mandatory on the part of the official respondents to comply
minimum two modes mentioned in Section 169 of the
CGST/BGST Act, 2017.
8. Learned GP-7 admits that the judgment of this
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Court in the case of M/s. Shree Shyam Trading Co. (supra)
has been followed in the subsequent cases and that this
judgment has attained finality.
9. Having regard to the submissions advanced on
behalf of the respondent Department, finding that there is an
admission that the notice to show cause was not served by at
least two modes upon the petitioner, we find that the
petitioner has made out a case of violation of principles of
natural justice and non-compliance with the mandatory
requirement under Section 169 of the CGST/BGST Act, 2017
as has been held by the Hon'ble Division Bench of this Court.
10. In such circumstance, the order for cancellation
of registration of the petitioner (Annexure-P/4 to the writ
application) suffers from the vice of the non-compliance with
the principles of natural justice. We find that the learned
Appellate Authority has dismissed the appeal on the ground of
limitation but without appreciating that the order of
cancellation of the registration was an ex-parte order as the
petitioner had no opportunity to comply with the notice to
show cause.
11. Before we part with this order, it is placed on the
record that Annexure-P/4 gives an impression that the
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petitioner had given a reply dated 19.08.2021 in response to
the show cause dated 10.08.2021.
12. Mr. Vivek Prasad, learned GP-7 has stated that
the said statement is incorrectly contained in the format of the
order of the department, therefore, the department has
corrected its format later on.
13. We record our displeasure on the manner in
which the department is using a pre-written format of the
order for cancellation of registration. This takes away the very
sanctity of the order (Annexure-P/4). The department is
directed to issue corrigendum to all such communications
wherever this format has been used. Non-compliance with
this would be viewed seriously.
14. Let this order be communicated to the
Commissioner, Goods and Services State Tax (respondent
no.3).
15. Setting aside of the impugned order (Annexure-
P/4) on the ground stated hereinabove shall not come in the
way of the respondents in taking up the matter afresh and
passing of a reasoned order, if so advised, after compliances
with the requirements of Section 169 and Section 75(4) of the
CGST/BGST Act, 2017.
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16. This writ application is allowed to the extent
indicated hereinabove.
(Rajeev Ranjan Prasad, J)
( Kumar Manish, J)
arvind/-
U
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