M/S Pushp Transport Company vs. Union Of INDIA And 3 Others

Facts

The petitioner, M/s Pushp Transport Company, filed a writ petition challenging an order dated August 23, 2024, passed by the Assistant Commissioner, Rajya Kar, Mathura, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on December 2, 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 portal, and any notice must be served through alternative means.

Held

The Court held that the petitioner's GST registration was cancelled on December 2, 2020, and subsequently, no business was conducted. A show cause notice was uploaded on the GST portal, and an order was passed under Section 73 of the Act. The Court found that once registration is cancelled, the petitioner is not obligated to check the GST portal. It was held that the mode of service of any show cause notice must be through alternative means to the petitioner. The Court agreed with the principle enunciated by 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 principle of natural justice. The impugned order dated August 23, 2024, was quashed and set aside. The department was granted liberty to issue a proper notice to the petitioner and proceed in accordance with law.

Key Issues

1. Whether the service of a show cause notice uploaded on the GST portal is a valid mode of service to a petitioner whose GST registration has been cancelled, thereby satisfying the principles of natural justice, under 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 December 2, 2020, they were not obligated to monitor the GST portal. They contended that any show cause notice should have been served through alternative means to ensure proper communication and adherence to the principles of natural justice. 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 proposition that service of notice must be effective. Revenue's Argument: The judgment does not record any specific arguments made by the revenue or respondent authorities.