M/S Chaudhary Auto Agency vs. State Of Uttar Pradesh And 2 Others

Facts

The petitioner, M/s Chaudhary Auto Agency, filed a writ petition challenging an order dated 07.12.2023 passed by the Assistant Commercial, State Tax, Sector-17, Agra, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on 03.06.2021, and no business was conducted thereafter. A show cause notice was uploaded on the GST portal, followed by the impugned order. The petitioner contended that once registration is cancelled, they are not obligated to check the portal, and service of any notice must be through alternative means.

Held

The Court held that once a GST registration is cancelled, the assessee is not obligated to continuously check the GST portal for notices. The mode of service of 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 order dated 07.12.2023 passed by the Assistant Commercial, State Tax, Sector-17, Agra, was quashed and set aside. The department was granted liberty to issue a proper notice to the petitioner and proceed in accordance with law. The ratio decidendi is that proper service of notice is a prerequisite for passing an order that adversely affects an assessee, especially when their registration stands cancelled.

Key Issues

1. Whether the service of a show cause notice uploaded on the GST portal is a valid mode of service when the petitioner's GST registration has been cancelled and no business is being conducted, thereby violating the principles of natural justice? (Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017). The petitioner argued that after cancellation of registration, they are not obligated to check the GST portal, and any notice must be served through alternative means. The respondent State did not record any specific arguments in this regard.