Katyal Industries Vs State of Up And 2 Others (Allahabad High Court)
In Katyal Industries Vs State of UP, the Allahabad High Court examined the cancellation of the petitioner’s registration under the Uttar Pradesh GST Act, 2017, on May 21, 2019. The petitioner’s registration remained cancelled, and no revival was sought by the petitioner. The core issue arose from the non-receipt of show cause notices related to the period of April 2018 to March 2019, which were purportedly sent electronically. The petitioner contended that due to the cancellation of registration, they were not obliged to access the GST portal to check for such notices. Furthermore, the respondents did not claim to have issued any physical notice to the petitioner before the order dated June 20, 2023, was passed, confirming the demand.
The Court highlighted a violation of natural justice, noting that the petitioner was not afforded a proper opportunity to respond before the adjudication order was issued. Based on these facts, the Court set aside the order dated June 20, 2023, and directed that the petitioner be treated as if the order itself were a show cause notice. The petitioner was granted four weeks to submit a final reply, and upon compliance, the authorities were directed to pass a fresh order with an opportunity for a personal hearing. The Court emphasized expeditious handling of the case, directing the new order to be issued within three months. This judgment underscores the importance of following the principles of natural justice in GST proceedings.
