Facts of the Case:

In this case, the petitioner challenged an ex-parte order under Section 73 of the Meghalaya GST Act, 2022, whereby reversal of Input Tax Credit along with interest and penalty was demanded. The petitioner’s GST registration was cancelled by order dated 24.01.2023 with effect from 09.11.2022. Being an elderly person and having divested the business, the petitioner did not monitor the GST portal thereafter. A Show Cause Notice dated 30.09.2023 and the impugned order were issued only through electronic mode. According to the petitioner, no physical notice was ever served and she had no actual knowledge of the proceedings. Awareness arose only in April 2025 when a recovery officer contacted her son. It was contended that issuance of notice solely through electronic mode, long after cancellation of registration and without ensuring actual service, amounted to violation of the principles of natural justice.

Issue:

Whether an ex-parte demand order could be sustained when the taxpayer’s GST registration stood cancelled and the show cause notice was served only electronically without ensuring effective knowledge, and whether such mode of service resulted in denial of reasonable opportunity and violation of natural justice.

Held that:

The Court observed that there was no dispute regarding cancellation of the petitioner’s GST registration with effect from 09.11.2022 and that there was nothing on record to indicate revival of such registration.

It was also not the case of the respondents that any physical or offline notice had been served upon the petitioner prior to passing of the impugned order. In these circumstances, the Court held that the petitioner had not been afforded any opportunity to defend herself and that the contention regarding violation of natural justice was justified. Consequently, the impugned ex-parte order dated 22.12.2023 was set aside.

The petitioner was directed to submit her reply or clarification to the show cause notice and the competent authority was directed to pass a fresh order in accordance with law after affording due opportunity of hearing. The writ petition was disposed of accordingly.

Case Name: Smti. Jayshree Jhunjhunwala Versus Union of India, Commissioner, Department of Goods and Service Tax, Shillong, Superintendent of Taxes, Circle-II, Shillong. dated 17.03.2026

To read the complete judgement 2026 Taxo.online 657