Zahid Scrap Traders Vs State of Uttar Pradesh (Allahabad High Court)
The Allahabad High Court heard a writ petition filed by Zahid Scrap Traders challenging an order dated December 5, 2023, passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017, for FY 2017-18.
The petitioner’s GST registration was canceled on January 14, 2019, after which no business was conducted. The impugned order followed a Show Cause Notice (SCN) that was merely uploaded on the GST portal. The High Court found that once a petitioner’s registration is canceled, they are not obligated to check the GST portal, and the SCN must be served through alternative means. Relying on the principle established in M/s Katyal Industries v. State of U.P. and others, the court determined that the failure to serve notice properly constituted a violation of the principle of natural justice. Accordingly, the court quashed and set aside the order dated December 5, 2023. The department was granted 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 dated 05.12.2023 (FY 2017-18) passed by the respondent No.2/Deputy Commissioner, State Taxes, Sector-1, Sambhal, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”).
