4655 Jagdish Singh Basera Security Agency Vs State of U.P. (Allahabad High Court)
The Allahabad High Court allowed a writ petition challenging an order dated 14.08.2024 passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner contended that its GST registration had already been cancelled on 26.12.2022 and that no business activities were carried out thereafter. Despite the cancellation, a show cause notice was merely uploaded on the GST portal, following which the impugned tax order was passed.
The Court noted that once a taxpayer’s GST registration stands cancelled, the taxpayer is not obligated to continue checking the GST portal for notices. In such circumstances, service of a show cause notice must be effected through alternative modes available under law rather than solely through portal upload.
The petitioner relied upon the decision of the coordinate Bench in M/s Katyal Industries v. State of U.P. and others, and the Court agreed with the principle laid down therein. The Court held that issuing a notice only through the GST portal after cancellation of registration resulted in a violation of the principles of natural justice, as the petitioner was deprived of a proper opportunity to respond.
Accordingly, the High Court quashed and set aside the order dated 14.08.2024 passed by the Deputy Commissioner under Section 73 of the Act. However, the Court granted liberty to the department to issue a proper notice to the petitioner and proceed in accordance with law. The writ petition was disposed of with these directions.
