M/S Uttaranchal Steels Private Limited vs. Union Of INDIA And 2 Others

Facts

M/s Uttaranchal Steels Private Limited (the petitioner) filed a writ petition challenging an ex parte order dated January 30, 2025, passed by the Joint Commissioner, Central GST Commissionerate, Meerut, under Section 74 of the Central Goods and Services Tax Act, 2017. The petitioner's GST license was cancelled on November 12, 2020, effective November 23, 2020. Subsequently, a show cause notice was issued by the respondent authority and published on the portal. The petitioner contended that since their registration was cancelled, the authorities should have issued the show cause notice physically or via email, which they failed to do. The impugned order was passed ex parte.

Held

The Court held that the ex parte order dated January 30, 2025, and all proceedings emanating from the show cause notice were liable to be quashed and set aside. The reasoning was that since the petitioner's GST registration had been cancelled, it was incumbent upon the authorities to issue the show cause notice either physically or by email to the petitioner. The failure to do so rendered the subsequent proceedings, including the ex parte order, invalid. The ratio decidendi is that proper service of a show cause notice is a mandatory procedural requirement, especially when the assessee's registration stands cancelled, and non-compliance vitiates the consequential order. The Court quashed and set aside the impugned order and directed the authorities to provide the petitioner with a copy of the show cause notice and all relied-upon documents within two weeks. The petitioner was granted four weeks to file a reply upon receipt, followed by a personal hearing and a reasoned order.

Key Issues

1. Whether the ex parte order dated January 30, 2025, passed by the Joint Commissioner, Central GST Commissionerate, Meerut, under Section 74 of the Central Goods and Services Tax Act, 2017, is liable to be quashed and set aside, given that the petitioner's GST registration was cancelled prior to the issuance of the show cause notice. Petitioner's Contention: The petitioner argued that the authorities failed to issue the show cause notice physically or by email to them, which was incumbent upon them given the cancellation of the petitioner's GST registration. They contended that this procedural lapse vitiated the subsequent ex parte order. Respondent's Contention: The judgment does not record any specific contentions made by the respondent GST authorities regarding the issuance of the show cause notice or the validity of the ex parte order.