M/S. Ram Trading Company vs. State Of U.P. And 2 Others

Facts

The petitioner, M/s. Ram Trading Company, filed a writ petition challenging an order dated April 29, 2024, passed by the Deputy Commissioner, State Tax, Sector-1, Bijnor, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on May 31, 2021, after which no business was conducted. A show cause notice was allegedly uploaded on the GST portal, followed by the impugned order. The petitioner argued that once registration is cancelled, they are not obligated to check the portal, and service of notices must be 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 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 principles of natural justice in the present case, agreeing with the principle enunciated by a coordinate Bench in M/s Katyal Industries v. State of U.P. and others. Consequently, the impugned order dated April 29, 2024, passed by the Deputy Commissioner, State Tax, 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. The writ petition was disposed of with this direction.

Key Issues

1. Whether the service of a show cause notice uploaded on the GST portal is a valid mode of service for a petitioner whose GST registration has been cancelled, thereby complying with the principles of natural justice, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017? Petitioner's arguments: The petitioner contended that after the cancellation of their GST registration on May 31, 2021, they were no longer obligated to monitor the GST portal for any notices. They argued that any show cause notice must be served through alternative means to ensure proper communication and adherence to natural justice principles. The petitioner relied on the coordinate Bench's decision in M/s Katyal Industries v. State of U.P. and others. Revenue's arguments: The judgment does not record any specific arguments made by the respondent State.