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 there was a violation of the principle of natural justice. 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 reasoning was that once a taxpayer's registration is cancelled, they are no longer obligated to check the GST portal for communications. The proper mode of service for any show cause notice must be through alternative means to ensure actual receipt by the petitioner. Consequently, the impugned order dated 28.08.2024 and the show cause notice dated 07.05.2024 passed by the respondents were quashed and set aside. The department was granted liberty to issue a proper notice to the petitioner and proceed in accordance with the law. The ratio decidendi is that statutory authorities must ensure proper service of notices, especially when a taxpayer's registration has been cancelled, to uphold the principles of natural justice.
Facts
The petitioner, Anand Kumar Goel Proprietor of M/s Shree Durga Trading Company, filed a writ petition challenging an order dated 28.08.2024 and a show cause notice dated 07.05.2024, 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 23.07.2022, after which no business was conducted. The petitioner contended that a show cause notice was uploaded on the GST portal, and the impugned order was passed subsequently. The petitioner argued 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 Article 226 of the Constitution of India and 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 23.07.2022, they were not obligated to monitor the GST portal. Therefore, a show cause notice uploaded solely on the portal, without any alternative mode of service, constitutes a violation of natural justice. They relied on the principle enunciated in 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.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1577 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 28.08.2024, and show cause notice dated 07.05.2024 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 23.07.2022. 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 Cou
The judgment continues below.
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