Envicon Technologies India Private Limited Vs State of U.P
Date: January 9, 2025
Subject Matter
Taxpayer is not required to access the GST portal to receive electronic notices after the cancellation of their registration
Summary
In the case of Envicon Technologies India Private Limited Vs State of U.P. and Another, the Allahabad High Court addressed the issue of the cancellation of the petitioner’s GST registration under the UPGST Act, 2017. The registration was cancelled on October 4, 2019, retroactive to September 24, 2019, and had not been reinstated. The petitioner contended that they had not received any show cause notice (SCN) for the financial year 2018-19 prior to the adjudication order on April 29, 2024. The court found that no physical or offline notices were issued or served to the petitioner, and the revenue authorities did not contest this claim. The court highlighted the violation of natural justice principles, noting that the petitioner was not required to access the GST portal to receive electronic notices after the cancellation of their registration. Consequently, the High Court set aside the April 2024 adjudication order, treating it as a show cause notice to which the petitioner could respond within four weeks. The court instructed the revenue authorities to conduct a fresh hearing with the petitioner and to issue a new order within three months post-compliance, emphasizing the necessity of procedural fairness in GST proceedings. The writ petition was disposed of as per these directives.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Having heard Sri Ajay Kumar Kashyap, learned counsel for the petitioner and Sri Ankur Agarwal learned Standing Counsel for the respondents, it remains undisputed that the petitioner’s registration under the UPGST Act, 2017 was cancelled on 4.10.2019 w.e.f. 24.9.2019. It is not the case of the revenue that the said registration has ever been revived or that the petitioner ever sought revival of that registration.
2. In view of the above, it does merit acceptance that the petitioner was not obligated to visit the GST portal to receive the show cause notices that may have been issued to the petitioner for 2018-19 through e-mode, preceding the adjudication order dated 29.04.2024 passed in pursuance thereto.
3. It is also not the case of the revenue that any physical/offline notice was issued to or served on the petitioner before the impugned order came to be passed.
4. In view of peculiar facts noted above, no useful purpose may be served in keeping the petition pending or calling counter affidavit at this stage or to relegate the present petitioner to the forum of alternative remedy.
5. Since essential requirement of rules of natural justice has remained to be fulfilled, we set aside the order dated 29.04.2024. The petitioner may treat the said order itself to be the notice and submit its final reply thereto within a period of four weeks from today. Subject to such compliance by the petitioner, fresh order may be passed after affording opportunity of personal hearing, as expeditiously as possible, preferably within a period of three months therefrom.
6. Writ petition is accordingly disposed of.