Facts of the Case

Smt. Suman Pathak challenged an order dated 15.02.2025 passed by the Commercial/State Tax Officer, Sector 4, Barabanki, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. Her registration under the GST Act had already been cancelled, after which no further business was carried out. Despite this, it appeared that no show cause notice was ever uploaded on the GST portal before the impugned Section 73 order was passed against her, raising a tax demand notwithstanding the cessation of business activity.

Issues Involved

  1. Whether an order under Section 73 of the UPGST Act, passed without any show cause notice having been uploaded on the GST portal, can be sustained.
  2. Whether the principle laid down in M/s Katyal Industries vs. State of U.P. applies to the facts of the present case.

Petitioner's Arguments

  • No show cause notice was uploaded on the GST portal at all before the impugned order was passed, despite the petitioner's registration having already been cancelled and no business being carried out thereafter.
  • The situation was squarely covered by the ruling of the Coordinate Bench in M/s Katyal Industries vs. State of U.P. and others [2024:AHC:23697-DB].

Respondent's Arguments

  • The State's counsel did not seriously dispute the essential factual position regarding the absence of a show cause notice on the portal, focusing instead on defending the Department's liberty to issue a fresh notice.

Court Order / Findings

  • The Court expressed agreement with the principle enunciated in the Coordinate Bench decision in M/s Katyal Industries vs. State of U.P., which the petitioner's counsel had relied upon.
  • The Bench found a clear violation of the principle of natural justice, since no notice had been uploaded and the petitioner's registration had already ceased to be operative, and accordingly quashed and set aside the impugned order dated 15.02.2025.
  • The Department was granted liberty to issue a proper notice to the petitioner and to act in accordance with law thereafter.

Important Clarification

  • A Section 73 order passed without any show cause notice having been uploaded on the GST portal at all — as distinct from a notice merely misplaced under a lesser-visible tab — is a more fundamental natural-justice defect and will be quashed outright.
  • The fact that a taxpayer's GST registration already stands cancelled, with no further business activity, does not excuse the Department from following due process before raising a fresh demand; a proper notice must still be issued.

Sections Involved

  • Section 73, UPGST Act, 2017 — demand provision under which the impugned order was passed.
  • Article 226, Constitution of India — invoked for the writ challenge.
  • GST Portal Notice Mechanism, CGST Rules, 2017 — governs valid electronic service of show cause notices.

Decision – In Favour of

The decision is in favour of the assessee (Smt. Suman Pathak). The impugned order was quashed for want of any show cause notice, with liberty to the Department to issue a proper notice and proceed afresh.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1419 of 2025; Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Manjive Shukla, J.; Order dated 9 December 2025.

Link to Download the Order

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