Shree Ganesh Infra Vs State of U.P. (Allahabad High Court)
Material Facts: The petition challenged an order passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner’s GST registration had been cancelled on 7 November 2020, after which no business was carried on. A show cause notice was uploaded on the GST portal and, thereafter, the impugned order dated 7 August 2024 was passed. Following cancellation of registration, the petitioner contended that there was no obligation to monitor the GST portal and that notice ought to have been served through an alternative mode.
Procedural History: The petitioner filed a writ petition under Article 226 of the Constitution challenging the order passed by the Deputy Commissioner under Section 73 of the Act.
Legal Issues: Whether a demand order under Section 73 could be sustained when the show cause notice was served only through the GST portal after cancellation of the petitioner’s GST registration.
Relevant Statutory Provisions
- Article 226 of the Constitution of India.
- Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017.
Court’s Findings and Reasoning
The Court observed that once GST registration had been cancelled, the petitioner was not obliged to check the GST portal. It held that service of any show cause notice thereafter had to be effected through an alternative mode. The Court relied upon the decision of the Coordinate Bench in M/s Katyal Industries v. State of U.P. and others and agreed with the principle laid down therein. It found that the impugned proceedings violated the principles of natural justice.
