Allahabad High Court
M/S Vinayak Traders vs State Of U.P. And Another on 31 July, 2025
Author: Mahesh Chandra Tripathi
Bench: Mahesh Chandra Tripathi
HIGH COURT OF JUDICATURE AT ALLAHABAD
?Neutral Citation No. - 2025:AHC:128460-DB
Court No. - 29
Case :- WRIT TAX No. - 3551 of 2025
Petitioner :- M/S Vinayak Traders
Respondent :- State of U.P. and Another
Counsel for Petitioner :- Aditya Pandey
Counsel for Respondent :- C.S.C.
Hon'ble Mahesh Chandra Tripathi,J.
Hon'ble Prashant Kumar,J.
1. Heard learned counsel for the petitioner and learned Standing Counsel for the State-respondents.
2. This writ petition has been filed by the petitioner aggrieved of the order dated 21.02.2025 passed by respondent no.2 under Section 73 of the UPGST Act, 2017 for the Tax Period April 2020-March 2021.
3. Learned counsel for the petitioner submits that in identical facts and circumstances, a Co-ordinate Bench had passed a detailed order on 11.3.2025 in WRIT TAX No. - 957 of 2025 (M/S Bhavin Endosurg v. State of U.P. and another), whereby, writ petition was allowed relying upon M/s Shiv Shakti Traders Vs. State of U.P. and another (Writ Tax No. 518 of 2025 decided on 19.02.2025). For ready reference, the order dated 11.3.2025 is reproduced herein:-
"1. This writ petition has been filed by the petitioner aggrieved of the order dated 27.04.2024 passed by respondent no.2 under Section 73 of the UPGST Act, 2017 for the Tax Period April 2018-March 2019.
2. Submissions have been made that the petitioner had applied for cancellation of his registration on 26.03.2021 and by order dated 03.04.2021 (Annexure-1), the same was cancelled with effect from 02.03.2021. It is submitted that after applying for cancellation of the registration, there was no occasion for the petitioner to have visited the portal of the Department wherein the petitioner was issued a show cause notice dated 20.12.2023 pertaining to Financial Year 2018-19 (Tax period April 2018-March 2019) which also was uploaded on the Additional Tab. It is submitted that thereafter an ex parte order dated 27.04.2024 has been passed and the same was not enforced.
3. Now, the petitioner has been called upon by the respondents to make payment of the amount pursuant to the order dated 27.04.2024 in the month of January 2025, when the petitioner became aware of passing of the order dated 27.04.2024.
4. It is submitted by learned counsel for the petitioner that in a similar nature petition being M/s Shiv Shakti Traders Vs. State of U.P. and another: Writ Tax No. 518 of 2025 decided on 19.02.2025, this Court had allowed the same whereby the order impugned was set aside and the matter was remanded back to the Assessing Authority.
5. The State is not in a position to dispute the same. In the case of M/s Shiv Shakti Enterprises (supra), this Court inter alia observed as under:
"4. Submissions have been made that once the petitioner had applied for cancellation of the registration, which apparently was not dealt with by the respondents at the relevant time and subsequently on 08.05.2024, the same has been cancelled with effect from 01.04.2021, there was no occasion for the respondents to have issued the notice in the Additional Tab, therefore, the ex parte order deserves to be quashed and set aside. Reliance has been placed on Chemsilk Commerce Pvt Ltd. Vs. State of U.P. and another : Writ Tax No. 403 of 2024, wherein in similar circumstances, the petition was allowed.
5. Counsel for the respondents does not dispute the fact that the petitioner had applied on 01.07.2021 seeking cancellation of registration and thereafter also it was issued notices for non-filing of returns, which establishes that the petitioner was not in business.
6. We have considered the submissions made by counsel for the parties and have perused the material available on record.
7. The application for cancellation filed on 01.07.2021 is evidenced by Annexure-4 and the very fact that the registration has been cancelled with effect from 01.04.2021 though order in this regard was passed on 08.05.2024, establishes the fact that the petitioner apparently had gone out of business and, therefore, there was no occasion for the petitioner to have visited the Department Portal to find out if any show cause notice had been issued for period prior to seeking cancellation or order passed. It is not the case of the Department that any notice in person was served on the petitioner.
8. A Coordinate Bench of this Court in Chemsilk Commerce Pvt. Ltd. (supra) in similar circumstances on finding that there has been violation of principles of natural justice, has set aside the order passed.
9. Consequently, the present petition is allowed, the order dated 27.08.2022 is set aside. The matter is remanded back to the assessing authority, the petitioner may submit its response to the show cause notice as issued within a period of 15 days from today and after providing opportunity of hearing to the petitioner, the authority would pass a fresh order.
6. In view of submissions made, following the order in the case of M/s Shiv Shakti Enterprises (supra), the writ petition is allowed. The order dated 27.04.2024 is set aside.
7. The matter is remanded back to the assessing authority, the petitioner may submit its response to the show cause notice as issued within a period of 15 days from today and after providing opportunity of hearing to the petitioner, the authority will pass a fresh order. "
4. Learned counsel for the petitioner states that the instant matter is squarely covered with the aforesaid judgment and the writ petition may also be allowed in the light of M/s Shiv Shakti Enterprises (supra).
5. So far as the factual and legal aspect of the matter, the same is not disputed by learned Standing Counsel.
6. Having regard to the facts of the case and the submissions made, the instant petition is allowed in terms of M/s Shiv Shakti Enterprises (supra). The order dated 21.02.2025 is set aside. The matter is remanded back to the assessing authority, the petitioner may submit its response to the show cause notice purportedly issued on 28.11.2024 within a period of three weeks from today and after providing opportunity of hearing to the petitioner, the authority will pass a fresh order.
Order Date :- 31.7.2025
A.K.Srivastava
