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2022 (12) TMI 195 - HC - GST


Issues:
Challenge to show cause notice for cancellation of registration, rejection of application for revocation of cancellation of registration, appeal order cancelling GST number with retrospective effect.

Analysis:
The petitioner challenged a show cause notice dated 28.2.2022 for cancellation of registration, an order rejecting the application for revocation of cancellation of registration dated 26.4.2022, and an appeal order dated 12.10.2022 cancelling the GST number with retrospective effect. The petitioner, engaged in buying and selling scrap materials, had been operating under the name M.M. Scrap Trading with a valid GST number since 11.2.2020. Despite complying with legal requirements, the registration was cancelled without proper consideration of the petitioner's submissions. The petitioner contended that the cancellation severely impacted their business operations. The petitioner filed an appeal enclosing evidence of business genuineness, but the appeal was rejected without reasons provided by the competent authority.

The petitioner's advocate argued that the show cause notice lacked reasons, and the subsequent orders were passed without considering the petitioner's submissions. The advocate highlighted the violation of principles of natural justice, citing a similar case decided in favor of the petitioner by a Coordinate Bench. The respondent's advocate acknowledged that the petitioner's reply was considered but failed to justify the absence of reasons in the notice and orders.

The Court emphasized the importance of providing reasons in administrative decisions, stating that the absence of reasons denies a reasonable opportunity of hearing and results in a miscarriage of justice. Citing the decision in Aggarwal Dyeing and Printing Works, the Court reiterated that reasons are essential for judicial review and accountability. The Court quashed the show cause notice, cancellation order, rejection order, and appeal order, directing the respondent to issue a fresh notice with detailed reasons and provide a reasonable opportunity of hearing to the petitioner.

In conclusion, the Court allowed the writ petition, emphasizing the necessity of reasons in administrative decisions and the principles of natural justice. The petitioner was granted the opportunity to respond to a fresh notice with objections and documents, clarifying that the Court did not delve into the merits of the case. No costs were awarded in the judgment.

 

 

 

 

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