M/S Dwivedi Traders, Unnao Thru.Proprietor Yogesh Dwivedi vs. State Of U.P. Thru. Addl. Chief Secy., State Tax, Lko. And Others
Held
The Court held that the petitioner's GST registration was cancelled on 06.10.2020, and subsequently, no business was conducted. The Court found that the service of the show cause notice, allegedly uploaded on the GST portal, was not a proper mode of service, especially after the cancellation of registration. This constituted a violation of the principle of natural justice. The Court agreed with the principle enunciated in the case of M/s Katyal Industries v. State of U.P. and others. Consequently, the impugned order dated 28.11.2023 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, M/S Dwivedi Traders, Unnao, filed a writ petition challenging an order dated 28.11.2023 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, 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 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 a valid mode of service upon a petitioner whose GST registration has been cancelled, thereby adhering to the principles of natural justice, turning on Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017? Petitioner's Argument: The petitioner argued that after the cancellation of their GST registration on 06.10.2020, they were not obligated to monitor the GST portal. They contended that the mode of service for any show cause notice must be through alternative means directly to the petitioner. The petitioner 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. Revenue's Argument: The judgment does not record any specific arguments made by the revenue.
Sections Cited
Section 73
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HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1462 of 2025 Court No. - 3 HON'BLE SHEKHAR B. SARAF, J. HON'BLE RAJEEV BHARTI, 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 28.11.2023 passed by the respondent No.3/Commercial Tax Officer, Unnao, Sector-2, 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 06.10.2020. 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 Co
The judgment continues below.
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