Govardhan Traders Vs State of U.P. (Allahabad High Court)
The petitioner, Govardhan Traders, approached the Madras High Court seeking to quash the show cause notice dated 25.07.2022 and the subsequent cancellation order dated 03.01.2023. The primary contention was that the show cause notice was not in the prescribed format and did not provide a specific date and time for a personal hearing, thus violating procedural fairness.
Arguments by the Petitioner
The petitioner’s counsel argued that the case was similar to a previously decided case (M/s Dharmadutt Brick Field, Bahraich vs. State of U.P.), where the court had ruled in favor of the petitioner due to a lack of proper notification and opportunity for a hearing. The petitioner claimed that the show cause notice was vague and failed to provide an adequate opportunity to respond, leading to the unjust cancellation of their GST registration.
Additionally, the petitioner mentioned the illness of their accountant and severe financial and trade difficulties as reasons for not filing GST returns regularly. Despite acknowledging receipt of the show cause notice, the petitioner did not reply, deeming the notice invalid due to its format.
State Respondents’ Defense
The State Respondents, represented by the learned Standing Counsel, countered by pointing out that the petitioner had indeed been served with the notice and had admitted to not filing GST returns. They emphasized that the petitioner had a statutory remedy available under Section 30 of the Uttar Pradesh Goods and Services Tax Act, 2017, which allows for the revocation of the cancellation of registration. The respondents argued that the petitioner should have pursued this remedy instead of filing a writ petition.
