Anand Kumar Goel Proprietor Of M/S Shree Durga Trading Company vs. State Of U.P. Thru. Prin. Secy. Institutional Finance And Another
Held
The Court held that the petitioner's GST registration was cancelled on July 23, 2022, and subsequently, no business was conducted. The Court found that a show cause notice uploaded on the GST portal, after the cancellation of registration, does not constitute proper service. The Court agreed with the petitioner's submission that once registration is cancelled, the petitioner is not obligated to check the GST portal, and any notice must be served through alternative means to comply with the principles of natural justice. The Court relied on the decision of a coordinate Bench in M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB. Consequently, the Court found a violation of the principles of natural justice. The impugned order dated 22.04.2025 and the show cause notice dated 05.12.2023 were quashed and set aside. The department was granted liberty to issue a proper notice to the petitioner and proceed in accordance with law. The ratio decidendi is that a notice uploaded on the GST portal is not valid service when the taxpayer's registration has been cancelled and no business is being conducted.
Facts
The petitioner, Anand Kumar Goel Proprietor of M/s Shree Durga Trading Company, filed a writ petition challenging an order dated 22.04.2025 and a show cause notice dated 05.12.2023, both passed by the respondents under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on July 23, 2022, after which no business was conducted. A show cause notice was allegedly uploaded on the GST portal, followed by the impugned order. The petitioner contended that once registration is cancelled, they are not obligated to check the GST portal, and any notice must be served through alternative means.
Key Issues
1. Whether the service of a show cause notice uploaded on the GST portal is sufficient when the petitioner's GST registration has been cancelled, thereby violating the principles of natural justice, as per Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017? Petitioner's arguments: The petitioner argued that after the cancellation of their GST registration on July 23, 2022, they were no longer obligated to monitor the GST portal. Therefore, a show cause notice uploaded on the portal did not constitute proper service. They relied on the principle of natural justice, asserting that any notice must be served through alternative means to ensure actual receipt and an opportunity to respond. The petitioner cited the case of M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB, in support of their contention. Revenue's arguments: The judgment does not record any specific arguments made by the respondents (revenue).
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1578 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 22.04.2025 and show cause notice dated 05.12.2023 passed by the respondents, 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 July 23, 2022. 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 in M/
The judgment continues below.
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