M/S Salh Industries vs. State Of Up And Another
Held
The Court held that issuing a show-cause notice electronically after registration cancellation, without ensuring physical service, is improper, especially when a circular mandates physical notice in such cases. The ex parte adjudication order was set aside.
Facts
The petitioner's GST registration was cancelled in 2021, but a show-cause notice for assessment year 2018-2019 was issued electronically in 2025, after the registration cancellation. The petitioner was unaware of these proceedings, which led to an ex parte adjudication order.
Key Issues
Whether an adjudication proceeding initiated electronically after GST registration cancellation, without proper notice, is valid. The validity of an ex parte adjudication order passed without the petitioner's knowledge.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD WRIT TAX No. - 3673 of 2026 Court No. - 39 HON'BLE SAUMITRA DAYAL SINGH, J. HON'BLE SWARUPAMA CHATURVEDI, J.
Heard Sri Ajay Kumar Yadav, learned counsel for the petitioner and Sri Arvind Kumar Mishra, learned Standing Counsel for the revenue.
Challenge has been raised to the adjudication order dated 05.12.2025 passed by the Deputy Commissioner, State Tax, Sector-3, Muzaffarnagar, under Section 74 of the UP GST Act, 2017. 3. Short ground pressed is that the registration of the petitioner was cancelled on 21.05.2021 whereas the show-cause notice was issued only through Common Portal i.e. through electronic mode on 28.06.2025, under Section 74 of UPGST Act, 2017 for Assessment Year 2018-2019, more than four years after cancellation of the registration. For that reason, the petitioner was not aware of the adjudication proceedings. It thus remained ex parte.
Only upon recovery being pursued against the petitioner as a consequence of ex parte adjudication order dated 05.12.2025, the petitioner acquired the knowledge of the same. It may be noted that the Commissioner of Commercial Tax, U.P. vide its Circular dated 07.05.2025 issue
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