Ahs Steels Vs Commissioner of State Taxes
Date: October 14, 2024
Court: High Court
Bench: Allahabad
Type: Writ Petition
Subject Matter
After registration cancellation, mode of service of any SCN should be by alternative means
Summary
The case is a writ petition filed under Article 226 of the Constitution of India, where the petitioner challenged the order dated December 26, 2023, issued by the Deputy Commissioner of State Tax, which was made under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner’s GST registration had been cancelled on March 18, 2019, and they had not conducted any business post-cancellation. The impugned order followed a show cause notice that was uploaded on the GST portal. The petitioner argued that after the cancellation of their registration, they were not required to monitor the GST portal for notices. The counsel referenced a previous ruling that supports their position regarding the necessity for alternative means of notice delivery. The court agreed that the principle of natural justice was violated in this instance, leading to the quashing of the December 26 order. The court directed the department to issue a proper notice to the petitioner and comply with legal protocols, subsequently disposing of the writ petition.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard counsel appearing on behalf of the petitioner and Sri Nimai Das, Additional Chief Standing Counsel appearing on behalf of the State.
2. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order dated December 26, 2023 passed by the respondent No.2/Deputy Commissioner, State Tax, Sector-17, Ghaziabad 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 March 18, 2019. 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 December 26, 2023 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.
With the above direction, the writ petition is disposed