ASSESSEE'S OBLIGATION TO MONITOR GST PORTAL NOTICES: INSIGHTS FROM KERALA HIGH COURT RULING

FACT OF THE CASE:

The petitioner’s GST registration was cancelled with effect from 30.9.2021.  The petitioner (KODUVAYUR CONSTRUCTIONS) was under the impression that it had no liability to pay the respondents under the above Acts.  However, the petitioner has been served with order dated 14.10.2022 on the GST portal to pay an amount of Rs.19,22,566/-.  There has been no effective service of notice on the petitioner by the respondents.  The unreasonable demand raised by the respondents is unjustifiable.  Hence, petitioner filed the writ petition.

LET’S EXPLORE SECTION 169 IN DETAIL:

 Section 169. Service of notice in certain circumstances:-

(1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely:-

(a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on behalf of the taxable person or to a person regularly employed by him in connection with the business, or to any adult member of family residing with the taxable person; or

(b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at his last known place of business or residence; or

(c) by sending a communication to his e-mail address provided at the time of registration or as amended from time to time; or

(d) by making it available on the common portal; or

(e) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or

(f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board of the office of the concerned officer or authority who or which passed such decision or order or issued such summons or notice.

(2) Every decision, order, summons, notice or any communication shall be deemed to have been served on the date on which it is tendered or published or a copy thereof is affixed in the manner provided in sub-section (1).

(3) When such decision, order, summons, notice or any communication is sent by registered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally taken by such post in transit unless the contrary is proved.

DEPARTMENT’S CONTENTION & JUDGEMENT:

The petitioner does not dispute the fact that assessment order was made available on the common portal. The petitioner’s only case is that as its GST registration was cancelled by order, the petitioner was under the impression that it has no liability to the respondents. This contention is untenable in view of the alternative modes of service provided under Sec.169 (1) of the CGST Act.

It was the bounden duty of the petitioner to have verified its common portal that is made available as per the provision. The writ petition is meritless and is consequentially dismissed.

OUR SUGGESTION:

We suggest the steps to follow after applying for GST registration cancellation. From verification of cancellation status to compliance maintenance the post-cancellation process need to follow as per below manner.

• • Verify Cancellation Status

• • Await Department Approval/Rejection: The GST department will review your application and may either approve or reject your cancellation request.

• • If Cancellation Request is approved: Once approved, file the Final Return (GSTR-10). Navigate to 'Services' > 'Returns' > 'Final Return (GSTR-10)'.

• • If Cancellation Request is rejected: In case of rejection, carefully review the reasons provided by the GST department in the rejection notice. Address the mentioned issues and prepare a reply against any Show Cause Notice (SCN) issued by the department.

• • If SCN reply is approved: Proceed with the steps outlined for an approved cancellation, including filing the Final Return (GSTR-10) and obtaining the Cancellation Certificate.

• • If Cancellation is Still Not Approved: Consider reapplying for cancellation.

• • Maintain Compliance: Continue to adhere to GST compliance requirements, including the filing of regular GST returns, until the cancellation process is finalized.

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