Nitco Coating Agency Vs State of U.P. and another (Allahabad High Court)
Allahabad High Court has set aside an order cancelling the Goods and Services Tax (GST) registration of Nitco Coating Agency, ruling that the revenue department failed to issue a physical notice or provide an opportunity for a personal hearing before passing the impugned order. The decision, delivered on a writ petition, underscores the fundamental requirement of natural justice in administrative proceedings, particularly concerning tax matters.
The petitioner, Nitco Coating Agency, challenged the cancellation of its registration under the Uttar Pradesh Goods and Services Tax (UPGST) Act, 2017, which took effect from March 31, 2019, with the cancellation order issued on April 24, 2019. It was undisputed before the court that the petitioner’s registration had been cancelled on this date and had not been subsequently revived.
The core of the petitioner’s argument, as presented by learned counsel Ms. Yashonidhi Shukla, revolved around the lack of proper intimation and hearing before the cancellation order. The court observed that since the petitioner’s GST registration was cancelled in 2019, it could not be obligated to regularly check the GST portal for e-notices, specifically those issued for the financial year 2018-19, which preceded the adjudication order dated April 24, 2024. This point was crucial as it suggested that the petitioner, without an active registration, might not have been reasonably expected to receive electronic communications.
