Case Law Details
AWE Global Logistics Vs State of U.P. (Allahabad High Court)
Allahabad HC Quashes GST Demand Order Due to Violation of Natural Justice After Registration Cancellation; No Obligation to Check GST Portal After Registration Cancellation, Says Allahabad HC; Section 73 Order Quashed for Failure to Properly Serve Notice After GST Registration Cancellation; Allahabad HC Sets Aside GST Proceedings Due to Improper Service of Show Cause Notice.
The writ petition was filed under Article 226 of the Constitution of India challenging the order dated April 30, 2024 passed by the Assistant Commissioner, State Tax, U.P., under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017.
The petitioner’s registration under the Act had been cancelled on June 1, 2018. According to the petitioner, no business was carried out thereafter. A show cause notice was uploaded on the GST portal, following which the impugned order under Section 73 of the Act was passed.
The petitioner contended that once its registration had been cancelled, it was not obligated to regularly check the GST portal. It was argued that service of any show cause notice should have been effected through alternative means.
In support of its case, the petitioner relied upon the decision of a coordinate Bench of the Allahabad High Court in M/s Katyal Industries v. State of U.P. and others (Neutral Citation No. 2024:AHC:23697-DB). The Court noted that it was in agreement with the principle laid down in that decision.
Upon consideration of the matter, the Court found that there had been a violation of the principles of natural justice. Consequently, the impugned order dated April 30, 2024 was quashed and set aside.
The Court further held that the department would be at liberty to issue a proper notice to the petitioner and proceed in accordance with law. With these directions, the writ petition was disposed of.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri Anit Vishal Srivastav, learned counsel for the petitioner and Shri Sanjay Sarin, learned Additional Chief Standing Counsel for the State as well as 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 April 30, 2024 passed by the respondent No.2/ Assistant Commissioner, Lucknow, Sector-1, Lucknow (A) Lucknow I, State Tax, 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 June 1, 2018. 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.
6. We find that there has been violation of the principle of natural justice, and accordingly, the impugned order dated April 30, 2024 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.
7. With the above direction, the writ petition is disposed of.
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