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"Upon Cancellation of GSTIN, SCN be served at address, meraly uploading of SCN upon portal is not sufficient"
FACTS & SUBJECT MATTER: The petitioner had cancelled its registration in the year 2019, a proper notice was required to be issued to it under Section 74 of the Act at its address. However, the authorities simply uploaded the Section 74 show cause notice on the web portal inspite of knowing that the petitioner had already cancelled its registration prior to the date of issuance of the show cause notice.
CASE LAW: M/s EASTERN MACHINE BRICKS AND TILES INDUSTRIES Vs. STATE OF U.P. AND OTHERS (WRIT TAX No. - 1507 of 2023 dated 08-01-2024)
ISSUE : Whether meraly uploading of SCN upon portal is sufficient after cancellation of GSTIN?
HELD: The Hon’ble Allahabad High Court held as under:
(1) In the present case, when the petitioner had cancelled its registration in the year 2019, a proper notice was required to be issued to it under Section 74 of the Act at its address. However, the authorities simply uploaded the Section 74 show cause notice on the web portal inspite of knowing that the petitioner had already cancelled its registration prior to the date of issuance of the show cause notice. This action clearly prevented the petitioner from appearing in the hearing in the original proceeding under Section 74 of the Act that was accordingly passed ex parte. Moreover, it was
incumbent upon the authorities to provide the copies of materials being relied upon by them (SIB report, in this case) to the petitioner/assessee so as to enable him to deal with the same. In my view, any action that proceeds without proper intimation and service of the show cause notice to the petitioner is vitiated and bad in law, and is, accordingly required to be
quashed and set aside.
(2) In light of the above, the impugned orders dated September 14, 2021 and October 5, 2023 are quashed and set aside with a direction upon respondent No.3 to grant an opportunity of hearing to the petitioner on January 30, 2024 at 11.00 AM, and after hearing the petitioner, pass a reasoned order within two weeks from the date of hearing. It is expected that no unnecessary adjournments shall be granted by the authority concerned. The authority is also directed to provide a copy of the SIB report to the petitioner within a week from date.
(3) With the above directions, the writ petition is allowed.
Click to download Order in the case of M/s EASTERN MACHINE BRICKS AND TILES INDUSTRIES Vs. STATE OF U.P. AND OTHERS (WRIT TAX No. - 1507 of 2023 dated 08-01-2024)(1) In the present case, when the petitioner had cancelled its registration in the year 2019, a proper notice was required to be issued to it under Section 74 of the Act at its address. However, the authorities simply uploaded the Section 74 show cause notice on the web portal inspite of knowing that the petitioner had already cancelled its registration prior to the date of issuance of the show cause notice. This action clearly prevented the petitioner from appearing in the hearing in the original proceeding under Section 74 of the Act that was accordingly passed ex parte. Moreover, it was
incumbent upon the authorities to provide the copies of materials being relied upon by them (SIB report, in this case) to the petitioner/assessee so as to enable him to deal with the same. In my view, any action that proceeds without proper intimation and service of the show cause notice to the petitioner is vitiated and bad in law, and is, accordingly required to be
quashed and set aside.
(2) In light of the above, the impugned orders dated September 14, 2021 and October 5, 2023 are quashed and set aside with a direction upon respondent No.3 to grant an opportunity of hearing to the petitioner on January 30, 2024 at 11.00 AM, and after hearing the petitioner, pass a reasoned order within two weeks from the date of hearing. It is expected that no unnecessary adjournments shall be granted by the authority concerned. The authority is also directed to provide a copy of the SIB report to the petitioner within a week from date.
(3) With the above directions, the writ petition is allowed.
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