M/S Tripureshwari Traders vs. State Of U.P. And Another

WTAX/2944/2025HC AllahabadGSTCNR UPHC01276149202506 July 20252 pages

For Petitioner: Shubham Agrawal

AI SummaryRemanded

Facts

The petitioner, M/s Tripureshwari Traders, filed a writ petition challenging an order dated February 11, 2025, passed by the Deputy Commissioner, State Tax, Sector-1, Hamirpur, U.P., under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner's GST registration was cancelled on September 30, 2024, 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 after registration cancellation, they were not obligated to check the GST portal, and the mode of service of the show cause notice should have been through alternative means.

Held

The Court held that the petitioner's GST registration had been cancelled, and consequently, they were not obligated to check the GST portal for notices. The Court found that the mode of service of the show cause notice, which was uploaded on the GST portal, was insufficient and violated the principles of natural justice. The Court agreed with the principle enunciated by a coordinate Bench in M/s Katyal Industries v. State of U.P. and others. Accordingly, the impugned order dated February 11, 2025, passed by the Deputy Commissioner, State Tax, was quashed and set aside. The Court directed the department to issue a proper notice to the petitioner and proceed in accordance with the law. No other issues were expressly left undecided.

Key Issues

1. Whether the service of a show cause notice uploaded on the GST portal is sufficient when the petitioner's GST registration has been cancelled, and no business is being conducted, thereby violating the principles of natural justice? (Question of law) Petitioner's arguments: The petitioner argued that once their GST registration was cancelled, they were no longer obligated to monitor the GST portal for notices. They contended that the mode of service of any show cause notice must be through alternative means to reach the petitioner directly. They relied on the decision of a coordinate Bench of the High Court in M/s Katyal Industries v. State of U.P. and others. Respondent's arguments: The respondent (State of U.P. and Another) did not record any specific arguments in the judgment.

Sections Cited

Section 73

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

Neutral Citation No. - 2025:AHC:105942-DB Court No. - 3 Case :- WRIT TAX No. - 2944 of 2025 Petitioner :- M/S Tripureshwari Traders Respondent :- State of U.P. and Another Counsel for Petitioner :- Shubham Agrawal Counsel for Respondent :- C.S.C. Hon'ble Shekhar B. Saraf,J. Hon'ble Praveen Kumar Giri,J. 1. Heard learned counsel for the parties and perused the record. 2. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order dated February 11, 2025 passed by the respondent No.2/Deputy Commissioner, State Tax, Sector-1, Hamirpur, U.P. under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "the Act"). 3. Factual matrix in the matter is that the petitioner's registration under the Act was cancelled on September 30, 2024. Subsequent to the same, no business was carried out by the petitioner. It appears that a show cause notice was uploaded on the GST portal and subsequent to the same, the order impugned was passed under Section 73 of the Act. 4. Once the registration has been cancelled, the petitioner is not obligated to check GST portal. The mode of service of any show cause notice has to be by way of alternative means to the petitioner. 5. Counsel appearing on behalf of the petitioner relies upon an order passed by the coordinate Bench of this Court in M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB. We are essentially in agreement with the said principle enunciated by the coordinate Bench in the said

order.

We find that there has been violation of the principle of natural justice, and accordingly, the impugned orders dated February 11, 2025 passed by the respondent No.2 is quashed and set aside. The department shall be at liberty to issue a proper notice to the petitioner and act in accordance with law.

With the above direction, the writ petition is disposed of. Order Date :- 7.7.2025 K.Tiwari (Praveen Kumar Giri, J.) (Shekhar B. Saraf, J.) KRISHNA KANT TIWARI High Court of Judicature at Allahabad

Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.