Manoj Kumar Yadav Vs State of U.P. And Another (Allahabad High Court)
Summary: The Allahabad High Court set aside an ex parte adjudication order dated 28 March 2026 under Section 74 of the UP GST Act, 2017, where the show-cause notice had been issued only through the Common Portal after cancellation of the petitioner’s registration. The registration was cancelled on 21 November 2020, whereas the notice was uploaded on 30 September 2025, almost five years later. The petitioner submitted that it remained unaware of the proceedings and acquired knowledge of the order only when recovery was pursued. The Court noted that the Commissioner of Commercial Tax, U.P., through a circular dated 7 May 2025, had issued binding instructions requiring physical service of notices in adjudication proceedings initiated after cancellation of registration.
It observed that a person whose registration stands cancelled may remain disabled from using the portal and, in any event, may not be obligated to continue working on it. Consequently, portal-only service after cancellation could leave the person unaware of subsequent proceedings. Disposing of the petition, the Court permitted the petitioner to file its final reply within two weeks of the judgment. Any application seeking cross-examination or relied-upon documents must accompany the reply and be decided before the final hearing is scheduled. The authority must communicate the personal hearing date with at least 15 days’ advance notice and thereafter pass a reasoned order within a further month, concluding the proceedings on or before 31 December 2026.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel for the petitioner and learned Standing Counsel for the revenue.
2. Challenge has been raised to the adjudication order dated 28.03.2026 passed by the respondent no. 2 under Section 74 of the UP GST Act, 2017.
3. Short ground pressed is that the registration of the petitioner was cancelled on 21.11.2020 whereas the show-cause notice was issued only through the Common Portal i.e. through electronic mode on 30.09.2025, almost five years after cancellation of the registration. For that reason, the petitioner was not aware of the adjudication proceedings. It thus remained ex parte.
4. Only upon recovery being pursued against the petitioner as a consequence of ex parte adjudication order dated 28.03.2026, the petitioner acquired knowledge of the same. It may be noted that the Commissioner of Commercial Tax, U.P. vide its Circular dated 07.05.2025 issued binding instructions to its subordinate authorities to ensure service of physical notice on the noticees facing adjudication proceedings initiated after cancellation of their respective registration.
5. The above Circular is founded on sound common sense inasmuch as once the registration of a person is cancelled, he may remain disabled and in any case he may not be obligated to work on the Common Portal, thereafter. Unless the person works on the Common Portal against the registration number assigned to him, he may remain unaware of any proceedings instituted against him, after cancellation of its registration.
6. Confronted with the situation, learned Standing Counsel would submit, in face of the Circular issued by the Commissioner, there can be no quarrel with the above proposition.
7. In view of the above, no useful purpose may be served in keeping the present petition pending or calling for a counter affidavit, at this stage.
8. Accordingly, the present writ petition is disposed of on the following terms :
(i) The impugned adjudication order dated 28.03.2026 is set aside.
(ii) The petitioner may file its final reply to the show-cause notice dated 30.09.2025 within a period of two weeks from today.
(iii) If the petitioner wants to claim an opportunity to cross-examine any witness or to be supplied documents relied upon etc., the petitioner may necessarily make such application alongwith reply. Such application, if filed may be dealt with and decided before fixing any date for final hearing.
(iv) Thereafter, the adjudicating authority may fix and communicate the petitioner the date for personal hearing with at least 15 days advance notice.
(v) The adjudicating authority may then pass appropriate reasoned order within a further period of one month such that the proceedings may be concluded on or before 31.12.2026.
