Aanya Enterprises Thru. Proprietor Anand Prakash Jaiswal vs. State Of U.P. Thru. Prin. Secy. Institutional Finance Lko. And Another
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. The reasoning was that once a taxpayer's registration is cancelled, they are not obligated to check the GST portal. Therefore, the mode of service of any show cause notice must be through alternative means to ensure proper communication. The impugned order dated February 18, 2025, 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 other issues were expressly left undecided.
Facts
The petitioner, Aanya Enterprises, filed a writ petition challenging an order passed by the Commercial Tax Officer, Shravsti Sector-Gonda under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on October 7, 2020. Subsequently, the petitioner claims to have ceased all business operations. A show cause notice was allegedly uploaded on the GST portal, and based on this, the impugned order was passed. The petitioner argued that after registration cancellation, they were not obligated to check the GST portal, and any notice should have been served through alternative means.
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, especially when the petitioner's GST registration has been cancelled and no business is being conducted, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017? Petitioner's Arguments: The petitioner contended that once their GST registration was cancelled, they were no longer obligated to monitor the GST portal for notices. They argued that the mode of service of any show cause notice must be through alternative means to ensure actual receipt and opportunity to respond. The petitioner relied on the coordinate bench's decision in M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB, for the principle that proper service is essential. Revenue's Arguments: The judgment does not record any specific arguments made by the revenue or state.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1594 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 passed by the respondent No.2, Commercial Tax Officer, Shravsti Sector- Gonda 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 07.10.2020. 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/s Katyal
The judgment continues below.
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