M/S Kanhaiya Traders vs. State Of U.P. And Another
Original PDF →Facts
The petitioner, M/s Kanhaiya Traders, had its GST registration cancelled effective March 28, 2024. The revenue has not contended that this registration was ever revived or that the petitioner sought its revival. Consequently, the petitioner argued it was not obligated to check the GST portal for show cause notices issued for the period 2018-19 via e-mode, preceding the adjudication order dated June 13, 2024. The revenue also did not claim to have issued any physical or offline notice to the petitioner before passing the impugned order. Given these facts, the Court found no purpose in keeping the petition pending or relegating the petitioner to an alternative remedy.
Held
The Court held that the petitioner was not obligated to visit the GST portal to receive show cause notices issued for the period 2018-19 via e-mode, as its GST registration had been cancelled effective March 28, 2024, and had not been revived. The Court found that the revenue had not issued any physical or offline notice to the petitioner before passing the adjudication order dated June 13, 2024. This failure to fulfill the essential requirement of natural justice, specifically the right to be heard, necessitated setting aside the impugned order. The Court directed that the petitioner could treat the adjudication order itself as a notice and submit its reply within four weeks. Following this, a fresh order was to be passed after affording an opportunity for a personal hearing, expeditiously, preferably within three months.
Key Issues
1. Whether the petitioner was obligated to check the GST portal for show cause notices issued for the period 2018-19 via e-mode, given that its GST registration was cancelled effective March 28, 2024? (Question of law, turning on principles of natural justice and procedural requirements under the Uttar Pradesh Goods and Services Tax Act, 2017). Petitioner's Contention: The petitioner argued that with its registration cancelled, it was not required to monitor the GST portal for e-mode notices, especially for a prior period. The revenue did not issue any physical notice, thus violating principles of natural justice. Revenue's Contention: The revenue did not dispute that the registration was cancelled and did not claim to have issued any physical notice. They did not present arguments regarding the petitioner's obligation to check the portal post-cancellation.
Sections Cited
Section 122
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC:81253-DB Chief Justice's Court Case :- WRIT TAX No. - 2292 of 2025 Petitioner :- M/S Kanhaiya Traders Respondent :- State of U.P. and another Counsel for Petitioner :- Vishwjit Counsel for Respondent :- C.S.C., Ankur Agarwal (S.C.) Hon'ble Arun Bhansali,Chief Justice Hon'ble Kshitij Shailendra,J.
Having heard Shri Vishwjit, learned counsel for the petitioner and Sri Ankur Agarwal learned Standing Counsel for the respondents, it remains undisputed that the petitioner's registration under the Uttar Pradesh Goods and Services Tax Act, 2017 ('the Act') was cancelled w.e.f. 28.03.2024. It is not the case of the revenue that the said registration has ever been revived or that the petitioner ever sought revival of that registration.
In view of the above, it does merit acceptance that the petitioner was not obligated to visit the GST portal to receive the show cause notices that may have been issued to the petitioner for 2018-19 through e-mode, preceding the adjudication order dated 13.06.2024 passed in pursuance thereto.
It is also not the case of the revenue that any physical/offline notice was issued to or served on the petitioner before the impugned order came to be passed.
In view of peculiar facts noted above, no useful purpose may be served in keeping the petition pending or calling counter affidavit at this stage or to relegate the present petitioner to the forum of alternative remedy.
Since essential requirement of rules of natural justice has remained to be fulfilled, we set aside the order dated 13.06.2024 passed under Section 122 of the Act. The petitioner may treat the said order itself to be the notice and submit its final reply thereto within a period of four weeks from today. Subject to such compliance by the petitioner, fresh order may be passed after affording opportunity of personal hearing, as expeditiously as possible, preferably within a period of three months therefrom.
Writ petition is accordingly disposed of. Order Date :- 16.5.2025 P.Sri./Jyotsana (Kshitij Shailendra, J) (Arun Bhansali, CJ) PUNEET SRIVASTAVA 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.