Emiza Supply Chain Services PVT. LTD. Thru. Authorized Signatory Sachin Kumar vs. Commercial Tax Officer Lko. And 2 Others
Held
The Court held that there was a violation of the principle of natural justice. The Court agreed with the principle enunciated by a coordinate Bench in M/s Katyal Industries v. State of U.P. and others, which implies that service of a show cause notice solely through upload on the GST portal, especially after registration cancellation and cessation of business, is not adequate. The reasoning is that the petitioner, having no active business and their registration cancelled, cannot be expected to regularly check the portal, and therefore, a more direct method of communication is required to ensure compliance with natural justice. The impugned order dated 28.04.2024 passed by the Commercial Tax Officer was quashed and set aside. The Department was granted liberty to issue a proper notice to the petitioner and proceed in accordance with the law. No issue was expressly left undecided.
Facts
The petitioner, Emiza Supply Chain Services Pvt. Ltd., filed a writ petition challenging an order dated 28.04.2024 passed by the Commercial Tax Officer, Sector 9, Lucknow, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on 31.08.2019, after which no business was conducted. A show cause notice was allegedly uploaded on the GST portal, leading to the impugned order. The petitioner contended that after registration cancellation, they were not obligated to check the portal, and service of notices should be through alternative means. The amount in dispute is not specified. The procedural history involves the issuance of the impugned order following a show cause notice uploaded on the GST portal.
Key Issues
1. Whether the service of a show cause notice uploaded on the GST portal is sufficient compliance with the principles of natural justice when the petitioner's GST registration has been cancelled and no business is being conducted? (Question of law) Petitioner's arguments: The petitioner argued that once their GST registration was cancelled, they were not obligated to monitor the GST portal for any notices. They contended that the mode of service for any show cause notice must be through alternative means directly communicated to the petitioner. They relied 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 respondent revenue authorities.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1640 of 2025 Court No. - 3 HON'BLE SHEKHAR B. SARAF, J. HON'BLE MANJIVE SHUKLA, J.
Heard learned counsel for the parties and perused the record.
This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order dated 28.04.2024 passed by the respondent No.1, Commercial Tax Officer, Sector 9, Lucknow 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 cancelled on 31.08.2019. 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 Bench of this Court i
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.