Order under Section 73 of UP GST Act quashed for violating natural justice in service of show cause notices

The HC quashed the impugned order under s. 73 of the UP GST Act, 2017, holding that once registration is cancelled, the petitioner is not required to monitor the GST portal for notices. Service of show cause notices must be effected by alternative means to comply with natural justice. The court found a violation of natural justice principles and set aside the order dated August 13, 2024. The department was permitted to issue a proper notice and proceed lawfully. The petition was disposed of accordingly.

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The Allahabad High Court, in a writ petition under Article 226 challenging the order dated August 13, 2024 passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017, held that once the petitioner's GST registration was cancelled on September 23, 2019, the petitioner was not obligated to monitor the GST portal for show cause notices. The Court emphasized that "the mode of service of any show cause notice has to be by way of alternative means to the petitioner." Relying on the coordinate Bench's decision in M/s Katyal Industries v. State of U.P., the Court found a violation of the principle of natural justice. Consequently, the impugned order was "quashed and set aside," with liberty granted to the department to issue a proper notice and proceed in accordance with law. The writ petition was disposed of accordingly.

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