M/S Sr Interiors vs. State Of U.P. And 3 Others

Facts

The petitioner, M/S Sr Interiors, filed a writ petition challenging two orders dated 23.04.2024 and 19.06.2025, passed by the Assistant Commissioner, State Tax, Ghaziabad. The petitioner's GST registration was cancelled on 19.10.2020, after which no business was conducted. A show cause notice was allegedly uploaded on the GST portal, leading to the impugned orders under Sections 73 and 79(1)(c) of the Uttar Pradesh Goods and Services Tax Act, 2017. 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.

Held

The Court held that once a petitioner's GST registration is cancelled, they are not obligated to check the GST portal for any notices. The mode of service for any show cause notice must be through alternative means to the petitioner. The Court found a violation of the principle of natural justice in the present case. Consequently, the impugned orders dated 23.04.2024 and 19.06.2025, passed by the Assistant Commissioner, State Tax, Ghaziabad, 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 proper service of notice is a fundamental aspect of natural justice, and reliance solely on portal uploads for a non-operational entity with a cancelled registration is insufficient.

Key Issues

1. Whether the service of a show cause notice uploaded on the GST portal is valid when the petitioner's GST registration has been cancelled and no business is being conducted, thereby violating the principles of natural justice, under Section 73 and Section 79(1)(c) of the Uttar Pradesh Goods and Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that after the cancellation of their GST registration on 19.10.2020, they were not obligated to monitor the GST portal. They asserted that any show cause notice must be served through alternative means to ensure proper communication and adherence to the principles of natural justice. 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. Revenue's Contention: The judgment does not record any specific arguments made by the revenue or respondent authorities.