A.K. Traders Vs State of U.P. (Allahabad High Court)
The Allahabad High Court considered a writ petition under Article 226 challenging an order passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner’s GST registration had been cancelled on 02.01.2025, after which the petitioner did not carry out any business. Subsequently, a show cause notice was uploaded on the GST portal and the impugned order was passed under Section 73.
The Court observed that once GST registration had been cancelled, the petitioner was not obligated to check the GST portal. It held that service of a show cause notice after cancellation of registration had to be made through alternative means.
The petitioner relied upon the coordinate Bench’s decision in M/s Katyal Industries v. State of U.P. and others, Neutral Citation No.2024:AHC:23697-DB. The Court stated that it was essentially in agreement with the principle laid down in that decision.
The Court found a violation of the principle of natural justice and consequently quashed and set aside the impugned order dated 20.12.2025. The Department was given liberty to issue a proper notice to the petitioner and proceed in accordance with law. The writ petition was accordingly disposed of.
Cases Discussed
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.2, Assistant Commissioner Sitapur, Sector-1, State Tax 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 02.01.2025. 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 justice, and accordingly, the impugned order dated 20.12.2025 passed by the respondent No.2 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.
