M/S Sugam Communication Thru.Proprietor Mr.Uday Pratap Singh vs. Union Of INDIA Thru. Secy. Ministry Of Finance Deptt. Revenue New Delhi And 4 Others
Held
The Court held that the impugned order dated 12.04.2024, passed by the Commercial Tax Officer, respondent No.4, is quashed and set aside. The Court found that there had been a violation of the principle of natural justice. The reasoning was that once a petitioner's GST registration is suspended, they are not obligated to continuously check the GST portal. Therefore, service of a show cause notice solely through the GST portal, without resorting to alternative means of communication, is insufficient. The Court agreed with the principle laid down by a coordinate bench in M/s Katyal Industries v. State of U.P. and others. The department is at liberty to issue a proper notice to the petitioner and proceed in accordance with the law. The issue of whether the petitioner was indeed not carrying out any business after registration suspension was not expressly decided, as the matter was disposed of on procedural grounds.
Facts
The petitioner, M/s Sugam Communication, challenges an order dated 12.04.2024 passed by the Commercial Tax Officer, Barabanki Sector-2, Ayodhya under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was suspended on 12.09.2019, after which no business was conducted. A show cause notice was uploaded on the GST portal, and subsequently, the impugned order was passed. The petitioner contends that once registration is cancelled, they are not obligated to check the GST portal, and any show cause notice must be served through alternative means.
Key Issues
1. Whether the service of a show cause notice uploaded on the GST portal, after the suspension of GST registration, constitutes proper service on the petitioner, thereby satisfying the principles of natural justice, as per Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017? Petitioner's Arguments: The petitioner argues that once their GST registration was suspended, they were no longer obligated to monitor the GST portal for notices. They contend that the mode of service of any show cause notice must be through alternative means to ensure actual receipt and awareness. They rely on the principle enunciated in the case of M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB. Revenue's Arguments: The judgment does not record any specific arguments made by the respondents.
Sections Cited
Section 73
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HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1525 of 2025 Court No. - 3 HON'BLE SHEKHAR B. SARAF, J. HON'BLE MANJIVE SHUKLA, J.
Heard learned counsel appearing on behalf of the parties.
This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order dated 12.04.2024 passed by the respondent No.4/Commercial Tax Officer, Barabanki Sector-2, Ayodhya (B), Ayodhya under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "the Act").
Factual matrix in the matter is that the petitioner's registration under the Act was suspended on 12.09.2019. Subsequent to the same, no business was carried out by the petitioner. It appears that a show cause notice was uploaded on the GST portal and subsequent to the same, the order impugned was passed under Section 73 of the Act.
Once the registration has been cancelled, the petitioner is not obligated to check GST portal. The mode of service of any show cause notice has to be by way of alternative means to the petitioner.
Counsel appearing on behalf of the petitioner relies upon an order passed by the coordinate Ben
The judgment continues below.
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