Facts of the Case
A batch of writ petitions involving common questions of fact
and law came before the Division Bench of the Uttarakhand High Court. The
petitions were 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 multiple assessment orders,
show cause notices and recovery proceedings on allegations including double
taxation and violation of principles of natural justice.
The petitioner specifically sought quashing of:
- Assessment
Order dated 12 August 2024;
- Assessment
Order dated 17 October 2025;
- Order
dated 26 December 2024;
- Show
Cause Notice dated 21 May 2024;
- Show
Cause Notice dated 18 January 2025;
- Show
Cause Notice dated 25 October 2024; and
- Recovery
Notice / Bank Attachment Order in Form GST DRC-13 dated 06 August 2025.
The petitioner also sought a direction requiring the
respondents to lift the attachment on the petitioner’s bank account.
A further relief was sought directing the respondent authority
to conduct a de novo consolidated assessment for FY 2019-20, after:
- providing
a fair opportunity of personal hearing; and
- eliminating
the alleged double taxation.
The central grievance raised by the petitioner was that the
assessment orders and show cause notices had not been served through any of the
modes prescribed under Section 169 of the Uttarakhand GST Act and had
merely been uploaded on the GST portal.
The petitioner relied upon the earlier judgment dated 12
February 2026 in WPMB No. 1065 of 2025, where, according to the submissions
recorded in the present judgment, a Coordinate Bench had taken the view that
after cancellation of GST registration, service must be effected through an
alternative mode provided under Section 169 and mere uploading on the GST
portal would not be sufficient.
Issues Involved
The principal issues arising from the judgment were:
- Whether
assessment orders and show cause notices were validly served when they
were merely uploaded on the GST portal.
- Whether,
after cancellation of GST registration, mere uploading of notices on the
GST portal constitutes sufficient service.
- Whether
service was required to be effected through any of the alternative modes
prescribed under Section 169 of the Uttarakhand GST Act.
- Whether
the impugned assessment orders and related proceedings suffered from
violation of principles of natural justice due to alleged non-service.
- Whether
the petitioner was entitled to relief against the assessment orders, show
cause notices and Form GST DRC-13 recovery / bank attachment proceedings.
- Whether
the petitions should be disposed of in terms of the earlier Coordinate
Bench judgment dated 12 February 2026 in WPMB No. 1065 of 2025.
- Whether
the Competent Authority should retain liberty to recommence proceedings
from the stage of the show cause notices issued under Sections 63, 73
and 74 of the Uttarakhand GST Act.
Petitioner’s Arguments
Learned counsel for the petitioner submitted that the
assessment orders as well as the show cause notices had not been served upon
the petitioner through any of the modes prescribed under Section 169 of the
Uttarakhand GST Act.
It was specifically argued that the notices and orders had
merely been uploaded on the GST portal and that such uploading was insufficient
in the circumstances of the case.
The petitioner further relied upon the decision of a
Coordinate Bench in WPMB No. 1065 of 2025.
According to the petitioner’s submission as recorded by the
Court, the Coordinate Bench had held that:
- after
cancellation of GST registration;
- service
must be effected by any of the alternative modes provided under Section
169 of the Uttarakhand GST Act; and
- mere
uploading of notices on the GST portal would not be sufficient.
On this basis, learned counsel submitted that the present
batch of writ petitions could also be decided in terms of the judgment dated 12
February 2026 rendered in WPMB No. 1065 of 2025.
Respondent / State’s Arguments
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, then the Competent Authority should be permitted to restart or
continue the proceedings from the stage of the show cause notice.
The State specifically submitted that the show cause notices
had been validly issued to the petitioners under:
- Section
63 of the Uttarakhand GST Act;
- Section
73 of the Uttarakhand GST Act; and
- Section
74 of the Uttarakhand GST Act.
Thus, while the State addressed the proposed disposal in terms
of the earlier judgment, it sought protection of the Competent Authority’s
right to proceed afresh from the show cause notice stage.
Court’s Findings
The Uttarakhand High Court noted that common questions of fact
and law were involved in the connected writ petitions and therefore decided
them through 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 February 2026 rendered in WPMB No. 1065 of 2025.
At the same time, the High Court expressly preserved the
authority of the Competent Authority to proceed from the stage of the show
cause notice.
The operative reasoning is important because the Court did not
terminate the GST proceedings altogether. Instead, while applying the earlier
Coordinate Bench judgment, it allowed the Competent Authority to continue the
statutory proceedings from the show cause notice stage.
Court Order
The Uttarakhand High Court ordered as follows:
- The
connected writ petitions were disposed of in terms of the judgment dated 12
February 2026 in WPMB No. 1065 of 2025.
- The Competent
Authority was granted liberty to proceed from the stage of the show cause
notice.
Accordingly, the batch of writ petitions stood disposed of.
Important Clarification
This judgment must be understood carefully and strictly
according to its recorded terms.
1. Mere Portal Uploading Was Challenged on the
Basis of Section 169
The petitioner’s specific contention was that the assessment
orders and show cause notices were not served through the modes prescribed
under Section 169 and were merely uploaded on the GST portal.
The petitioner relied on the earlier Coordinate Bench ruling
in WPMB No. 1065 of 2025 concerning service after cancellation of GST
registration.
2. The Court Applied the Earlier WPMB No. 1065 of
2025 Judgment
The Division Bench disposed of the petitions in terms of the
judgment dated 12 February 2026 rendered in WPMB No. 1065 of 2025.
Therefore, the present judgment’s operative result is directly
connected with the legal approach adopted in that earlier decision.
3. Proceedings Were Not Permanently Terminated
A crucial clarification is that the Competent Authority was
expressly granted liberty to proceed from the stage of the show cause notice.
Thus, the judgment should not be understood as granting
permanent immunity from assessment or as preventing lawful GST proceedings.
4. Show Cause Notice Stage Was Preserved
The State had specifically requested that, if relief were
granted in terms of the earlier judgment, the Competent Authority should be
permitted to proceed from the show cause notice stage.
The High Court accepted this position by expressly preserving
such liberty.
5. Allegation of Double Taxation Was Part of the
Relief Sought
The petitioner sought quashing of the impugned assessment
orders on the ground that they suffered from alleged double taxation and
violation of natural justice. The petitioner also sought a de novo consolidated
assessment for FY 2019-20 after providing a fair opportunity of personal
hearing and eliminating alleged double taxation.
However, the short common judgment ultimately disposed of the
matters in terms of WPMB No. 1065 of 2025 and expressly permitted proceedings
from the show cause notice stage.
Sections Involved
·
Section 169 of the Uttarakhand GST Act – Service
of Decision, Order, Summons, Notice and Other Communication
·
Section 63 of the Uttarakhand GST Act – Assessment
of Unregistered Persons
·
Section 73 of the Uttarakhand GST Act –
Determination of Tax in Cases Other Than Fraud, Wilful Misstatement or
Suppression
·
Section 74 of the Uttarakhand GST Act –
Determination of Tax Involving Fraud, Wilful Misstatement or Suppression
· Form GST DRC-13 – Recovery / Bank Attachment Proceedings
Link to download the order - https://mytaxexpert.co.in/uploads/1783674778_1486compressed.pdf
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