Allahabad High Court
M/S NUTECH SYSTEM CONTROLversusSTATE OF U.P. AND ANOTHER
- Decided
Holding
The adjudication order dated 09‑12‑2025 is set aside.
Summary
M/S Nutech System Control challenged an adjudication order dated 09‑12‑2025 passed under Section 73 of the U.P. GST Act, 2017, on the ground that its GST registration had been cancelled on 15‑06‑2024 but the show‑cause notice was only issued electronically on 24‑09‑2025, leaving the petitioner unaware of the proceedings and rendering the order ex parte. The petitioner argued that a circular dated 07‑05‑2025 issued by the Commissioner of Commercial Tax required physical service of notice after cancellation, which was not complied with. The Court examined the requirement of proper notice and the principles of natural justice, noting that electronic notice alone could not be deemed sufficient where the registration was cancelled. Consequently, the Court set aside the adjudication order, directed the petitioner to file its final reply within two weeks, and prescribed procedural steps for any further applications, personal hearing, and final order. The writ petition was disposed of with the order to conclude the proceedings by 30‑11‑2026.
Issues considered
- Whether the adjudication order dated 09‑12‑2025 is valid when the show‑cause notice was served only electronically after the petitioner’s GST registration had been cancelled.
- Whether the circular issued by the Commissioner of Commercial Tax mandating physical service of notice after cancellation creates a procedural requirement under the U.P. GST Act, 2017.
Legislation cited
- U.P. GST Act, 2017 — s. 73
Subjects
- GST registration cancellation
- show‑cause notice
- electronic service of notice
- ex parte adjudication
- natural justice
- Section 73 U.P. GST Act
- high court writ petition
- procedural fairness
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT TAX No. - 3682 of 2026
M/S Nutech System Control
.....Petitioner(s)
Versus
State of U.P. and Another
.....Respondent(s)
Counsel for Petitioner(s) : Ashana Agrawal, Manish Chandra
Pandey, Mayank Srivastava
Counsel for Respondent(s) : C.S.C.
Court No. - 39
HON'BLE SAUMITRA DAYAL SINGH, J.
HON'BLE SWARUPAMA CHATURVEDI, J.
1. Heard Ms. Ashana Agarwal along with Mr. Manish Chandra Pandey,
learned counsel for the petitioner and Sri Arvind Kumar Mishra, learned
Standing Counsel for the revenue.
2. Challenge has been raised to the adjudication order dated 09.12.2025
passed by respondent no.2 under Section 73 of the UPGST Act, 2017.
3. Short ground pressed is that the registration of the petitioner was
cancelled on 15.06.2024 whereas the show-cause notice was issued only
through Common Portal i.e. through electronic mode on 24.09.2025, one
year after cancellation of the registration. For that reason, the petitioner
was not aware of the adjudication proceedings. It thus remained ex parte.
4. Only upon recovery being pursued against the petitioner as a
consequence of ex parte adjudication order dated 09.12.2025, the
petitioner acquired the knowledge of the same. It may be noted that the
Commissioner of Commercial Tax, U.P. vide its Circular dated
07.05.2025 issued binding instructions to its subordinate authorities to
ensure service of physical notice on the noticees facing adjudication
proceedings initiated after cancellation of their respective registration.
5. The above Circular is founded on sound common sense inasmuch as
once the registration of a person is cancelled, he may remain disabled and
in any case he may not be obligated to work on the Common Portal,
WTAX No. 3682 of 2026
2
thereafter. Unless the person works on the Common Portal against the
registration number assigned to him, he may remain unaware of any
proceedings instituted against him, after cancellation of its registration.
6. Confronted with the situation, learned Standing Counsel would submit,
in face of the Circular issued by the Commissioner, there can be no
quarrel with the above proposition.
7. In view of the above, no useful purpose may be served in keeping the
present petition pending or calling for a counter affidavit, at this stage.
8. Accordingly, the present writ petition is disposed of on the following
terms :
(i) The impugned adjudication order dated 09.12.2025 is set aside.
(ii) The petitioner may file its final reply to the show-cause notice dated
24.09.2025 within a period of two weeks from today.
(iii) If the petitioner wants to claim an opportunity to cross-examine any
witness or to be supplied documents relied upon etc., the petitioner may
necessarily make such application along with reply. Such application, if
filed may be dealt with and decided before fixing any date for final
hearing.
(iv) Thereafter, the adjudicating authority may fix and communicate the
petitioner the date for personal hearing with at least 15 days advance
notice.
(v) The adjudicating authority may then pass appropriate reasoned order
within a further period of one month such that the proceedings may be
concluded on or before 30.11.2026.
(Swarupama Chaturvedi,J.) (Saumitra Dayal Singh,J.)
September 8, 2026
Prakhar
Digitally signed by :-
PRAKHAR SRIVASTAVA
High Court of Judicature at Allahabad
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