No New Grounds Allowed at Appeal Stage Without Prior Notice: Allahabad HC Restores GST Registration [Read Order]
The HC ruled that GST registration cannot be cancelled on new grounds introduced at the appellate stage without prior notice, and ordered the restoration of the petitioner’s registration
![No New Grounds Allowed at Appeal Stage Without Prior Notice: Allahabad HC Restores GST Registration [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Allahabad-High-Court-GST-Registration-Procedural-violation-GST-taxscan.jpg "No New Grounds Allowed at Appeal Stage Without Prior Notice: Allahabad HC Restores GST Registration [Read Order]")
In a recent ruling, the Allahabad High Court ruled that new grounds cannot be introduced at the appellate stage without prior notice in the show cause proceedings and restored the petitioner’s GST registration. UPS SCS India, the petitioner, engaged in freight forwarding and logistics services under two separate GST registrations, had filed a writ petition challenging the cancellation...
In a recent ruling, the Allahabad High Court ruled that new grounds cannot be introduced at the appellate stage without prior notice in the show cause proceedings and restored the petitioner’s GST registration.
UPS SCS India, the petitioner, engaged in freight forwarding and logistics services under two separate GST registrations, had filed a writ petition challenging the cancellation of its registration by the Assistant Commissioner.
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The cancellation was initially based on allegations of contravention under Section 25(2) of the UP GST Act, and later, during the appeal process, the appellate authority introduced a new ground claiming that the petitioner’s two business verticals could not be bifurcated due to having the same HSN/SAC codes.
The petitioner’s counsel argued that the show cause notice was vague, lacked specific allegations, and did not provide an opportunity for a personal hearing as required by law. The petitioner also pointed out that the appellate authority, instead of addressing these issues, dismissed the appeal on new grounds that were never part of the original notice.
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The department’s counsel defended the cancellation by arguing that the petitioner was discharging services under the same HSN/SAC code and could not justify having two separate registrations.
A single-judge bench comprising Justice Piyush Agrawal observed that the show cause notice failed to meet the statutory requirements under Rule 22(1) of the GST Rules, as it neither fixed a date for hearing nor provided specific charges or evidence against the petitioner.
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The court held that introducing new grounds at the appellate stage, without confronting the petitioner with such grounds beforehand, was a violation of principles of natural justice. The court quashed the cancellation orders and directed the GST authorities to restore the petitioner’s registration. The writ petition was allowed.
To Read the full text of the Order CLICK HERE
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