M/S Dwivedi Traders Thru. Proprieter Yogesh Dwivedi vs. State Of U.P. Thru. Addl. Chief Secy. State Tax Lko. And 2 Others

Held

The Court held that there was a violation of the principle of natural justice. The Court agreed with the petitioner's contention that once the GST registration was cancelled, the petitioner was not obligated to check the GST portal. The Court found that the mode of service of the show cause notice, which was uploaded on the portal, was not proper. Therefore, the impugned order dated 10.02.2025 passed by the Commercial Tax Officer was quashed and set aside. The Court directed the department to issue a proper notice to the petitioner and proceed in accordance with the law. The ratio decidendi is that a show cause notice must be served through appropriate means to the assessee, especially when their registration has been cancelled, to uphold the principles of natural justice.

Facts

The petitioner, M/S Dwivedi Traders, filed a writ petition challenging an order dated 10.02.2025 passed by the Commercial Tax Officer, Unnao Sector-2, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on 06.10.2020, and they claim no business was conducted thereafter. 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 GST portal, and service of any notice should have been through alternative means.

Key Issues

1. Whether the service of the show cause notice uploaded on the GST portal was proper and in compliance with the principles of natural justice, given that the petitioner's GST registration had been cancelled prior to the issuance of the notice? (Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017). Petitioner's arguments: The petitioner argued that once their GST registration was cancelled, they were no longer obligated to monitor the GST portal for any notices. They contended that the mode of service for any show cause notice should have been through alternative means to ensure proper communication. The petitioner relied on the 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 notice is essential. Revenue's arguments: The judgment does not record any specific arguments made by the revenue or the respondents.