Amita Singh Vs State Of U.P. (Allahabad High Court)
Summary: The Allahabad High Court has quashed an order dated 16.08.2024 passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017, holding that the petitioner’s right to natural justice was violated. The petitioner’s GST registration had been cancelled on 30.09.2022 and, thereafter, no business was carried out by the petitioner. A show cause notice was subsequently uploaded on the GST portal, followed by the impugned order. The Court observed that once GST registration has been cancelled, the petitioner is not obligated to check the GST portal and that a show cause notice has to be served through alternative means. 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, with which the Court stated that it was essentially in agreement. Finding violation of natural justice, the Court quashed and set aside the impugned order and left the Department at liberty to issue a proper notice to the petitioner and act in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel for the parties and perused the record.
2. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order passed by the respondent No.3, Commercial Tax Officer, Ayodhya, Sector-1, Ayodhya (A) under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”).
3. Factual matrix in the matter is that the petitioner’s registration under the Act was cancelled on 30.09.2022. Subsequent to the same, no business was carried out by the petitioner. It appears that a show cause notice was uploaded on the GST portal and subsequent to the same, the order impugned was passed under Section 73 of the Act.
4. Once the registration has been cancelled, the petitioner is not obligated to check GST portal. The mode of service of any show cause notice has to be by way of alternative means to the petitioner.
5. Counsel appearing on behalf of the petitioner relies upon an order passed by the coordinate Bench of this Court in M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB. We are essentially in agreement with the said principle enunciated by the coordinate Bench in the said order.
6. We find that there has been violation of the principle of natural WTAX No. 1059 of 2026 2 justice, and accordingly, the impugned order dated 16.08.2024 passed by the respondent No.3 is quashed and set aside. The Department shall be at liberty to issue a proper notice to the petitioner and act in accordance with law.
7. With the above direction, the writ petition is disposed of.
