Ved Enterprises Unnao Vs State of U.P (Allahabad High Court)
Summary: The petitioner challenged the order dated May 28, 2022 passed by the Deputy Commissioner, State Tax, Sector-1, District Unnao under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017. The writ petition was filed under Article 226 of the Constitution of India.
The petitioner’s registration under the Act had been cancelled on 16.11.2021. Thereafter, the petitioner did not carry on any business. A show cause notice was uploaded on the GST portal and, subsequently, the impugned order was passed under Section 74.
The Court held that once the registration had been cancelled, the petitioner was not obligated to check the GST portal. The Court observed that the mode of service of any show cause notice had to be by way of alternative means to the petitioner. The petitioner relied upon the coordinate Bench decision in M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB. The Court stated that it was essentially in agreement with the principle enunciated by the coordinate Bench.
Finding a violation of the principle of natural justice, the Allahabad High Court quashed and set aside the impugned order dated May 28, 2022. The Department was left at liberty to issue a proper notice to the petitioner and act in accordance with law. The writ petition was accordingly disposed of.
