Facts of the Case
A batch of writ petitions involving common
questions of fact and law was clubbed together and decided by a common
judgment. For brevity and convenience, the High Court considered and discussed
the facts of WPMB No. 9 of 2026.
The petitioner sought quashing of:
- Assessment
Orders dated 12.08.2024 and 17.10.2025;
- Order
dated 26.12.2024;
- Show
Cause Notices dated 21.05.2024, 18.01.2025, and 25.10.2024;
- Recovery
Notice/Bank Attachment Order in Form GST DRC-13 dated 06.08.2025.
The petitioner alleged that the impugned
assessment orders suffered from:
- double
taxation; and
- violation
of principles of natural justice.
The petitioner also sought a direction requiring
the respondents to:
- lift
the attachment over the petitioner’s bank account; and
- conduct
a de novo consolidated assessment for Financial Year 2019-20 after
providing a fair opportunity of personal hearing and eliminating the
alleged double taxation.
The principal procedural grievance pressed before
the Court was that the assessment orders and Show Cause Notices had not been
served upon the petitioner through any of the modes prescribed under Section
169 of the Uttarakhand GST Act and had merely been uploaded on the GST
portal.
Issues Involved
The principal issues arising in the batch of writ
petitions were:
- Whether
mere uploading of assessment orders and Show Cause Notices on the GST
portal constitutes sufficient service under Section 169 of the Uttarakhand
GST Act.
- Whether,
after cancellation of GST registration, service must be effected through
any of the alternative modes prescribed under Section 169.
- Whether
assessment orders and notices allegedly not served in accordance with
Section 169 could be sustained.
- Whether
the impugned proceedings suffered from violation of principles of natural
justice.
- Whether
the assessment proceedings involved alleged double taxation.
- Whether
the Recovery Notice/Bank Attachment Order in Form GST DRC-13 dated
06.08.2025 was liable to be quashed.
- Whether
the attachment over the petitioner’s bank account was liable to be lifted.
- Whether
the petitioner was entitled to a de novo consolidated assessment for FY
2019-20 after fair opportunity of personal hearing.
- Whether
the batch of writ petitions should be disposed of in terms of the earlier
judgment dated 12.02.2026 rendered in WPMB No. 1065 of 2025.
- Whether
the Competent Authority should retain liberty to recommence proceedings
from the stage of Show Cause Notice under Sections 63, 73 and 74 of the
Uttarakhand GST Act.
Petitioner’s Arguments
The learned counsel for the petitioner submitted
that the assessment order as well as the Show Cause Notice had not been served
upon the petitioner by any of the modes prescribed under Section 169 of the
Uttarakhand GST Act.
The petitioner specifically argued that:
- the
assessment orders and Show Cause Notices were merely uploaded on the GST
portal;
- mere
uploading on the GST portal was insufficient service;
- a
Coordinate Bench of the High Court had already considered the issue in WPMB
No. 1065 of 2025;
- in
that earlier case, the Coordinate Bench had taken the view that after
cancellation of GST registration, service must be effected through any of
the alternative modes provided under Section 169 of the Uttarakhand GST
Act;
- mere
uploading of notices on the GST portal after cancellation of GST
registration would not be sufficient; and
- the
present writ petitions could therefore be decided in terms of the judgment
dated 12.02.2026 in WPMB No. 1065 of 2025.
The reliefs claimed in the writ petition also
reflected the petitioner’s case that the impugned assessment orders suffered
from double taxation and violation of natural justice.
Respondent’s Arguments
The learned State Counsel submitted that if the
writ petitions were to be decided in terms of the judgment rendered in WPMB
No. 1065 of 2025, the Competent Authority should be permitted to recommence
or continue the proceedings from the stage of the Show Cause Notice.
The State specifically contended that:
- liberty
should be granted to the Competent Authority to proceed from the Show
Cause Notice stage; and
- the
Show Cause Notices had been validly issued to the petitioners under Sections
63, 73 and 74 of the Uttarakhand GST Act.
Thus, while responding to the petitioner’s
reliance on the earlier Coordinate Bench judgment, the State sought protection
of the Department’s right to continue adjudication from the Show Cause Notice
stage.
Court Order / Findings
The High Court observed that common questions of
fact and law arose in the connected writ petitions and therefore clubbed them
together for disposal by a common judgment.
Having regard to the facts and circumstances of
the case, the Division Bench disposed of the writ petitions in terms of the
judgment dated 12.02.2026 rendered in WPMB No. 1065 of 2025.
At the same time, the Court expressly protected
the authority’s right to continue the statutory proceedings.
The operative direction was:
The Competent Authority shall be at liberty
to proceed from the stage of Show Cause Notice.
Accordingly:
- the
writ petitions were disposed of in terms of the earlier judgment dated
12.02.2026 in WPMB No. 1065 of 2025; and
- the
Competent Authority retained liberty to proceed from the Show Cause Notice
stage.
Important Clarification
1. Mere GST Portal Upload After Cancellation
of Registration
The petitioner relied on the principle attributed
in the present judgment to WPMB No. 1065 of 2025 that, after
cancellation of GST registration, service must be effected by one of the
alternative modes available under Section 169 of the Uttarakhand GST Act and
mere uploading of notices on the GST portal would not be sufficient.
The present batch was disposed of in terms of that
earlier judgment.
2. Proceedings Were Not Terminated
Permanently
The judgment should not be understood to mean that
the GST Department was permanently barred from continuing proceedings.
The High Court expressly held that:
the Competent Authority would be at liberty
to proceed from the stage of Show Cause Notice.
This is a significant operative clarification.
3. Sections 63, 73 and 74 Remained Relevant
The State specifically submitted that the Show
Cause Notices had been validly issued under Sections 63, 73 and 74 of the
Uttarakhand GST Act.
The Court preserved liberty to proceed from the
Show Cause Notice stage rather than foreclosing the underlying adjudication.
4. Double Taxation and Natural Justice Were
Part of the Relief Challenge
The petitioner had sought quashing of the
assessment orders on the grounds that they suffered from:
- double
taxation; and
- violation
of natural justice.
However, the concise final order disposed of the
petitions in terms of WPMB No. 1065 of 2025 and granted liberty to proceed from
the Show Cause Notice stage.
Therefore, it would be inaccurate to state that
the High Court rendered a detailed independent adjudication on the merits of
the alleged double taxation issue in this judgment.
5. De Novo Consolidated Assessment Was Sought
The petitioner specifically sought a direction for
a de novo consolidated assessment for FY 2019-20 after:
- fair
opportunity of personal hearing; and
- elimination
of alleged double taxation.
However, the operative order specifically states
that the Competent Authority is at liberty to proceed from the Show Cause
Notice stage.
Sections Involved
·
Section 169 of the Uttarakhand
GST Act – Service of Notice, Order and Communication
·
Section 63 of the Uttarakhand GST
Act
·
Section 73 of the Uttarakhand GST
Act
·
Section 74 of the Uttarakhand GST
Act
· Form GST DRC-13
Link to download the order - https://www.mytaxexpert.co.in/uploads/1783497821_1470compressed.pdf
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