2022 (5) TMI 124 - HC - GST

Cancellation of registration of petitioner - Violation of principles of natural justice - the show cause notice called upon the writ applicant to appear for personal hearing on the appointed date and time failing which, the case was to be decided ex-parte - HELD THAT - On bare perusal of the contents of the show cause notice as well as the impugned order, it is found that the said show cause notice is absolutely vague, bereft of any material particulars and the impugned order is also vague and a non-speaking order. It cannot be disputed that with cancellation of registration, the dealer is liable to both civil and penal consequences. To say the least, the authority ought to have at least referred to the contents of the show cause and the response thereto, which was not done. Not only the order is non-speaking but cryptic in nature and the reason of cancellation not decipherable there from. In such circumstances, the Principles of natural justice stand violated and the order needs to be quashed as it entails penal and pecuniary consequences. Matter disposed off.

Summary

Issues:
Challenging cancellation of registration under the Gujarat Goods and Service Tax Act, 2017.

Analysis:

Issue 1: Show Cause Notice and Order Validity
The writ applicants challenged the cancellation of registration by the State Tax Officer under the GGST Act, 2017. The show cause notice issued lacked material particulars and failed to specify the next date of hearing for personal appearance. The Assistant Commissioner passed a non-speaking order without considering the objections raised by the writ applicant, leading to a violation of principles of natural justice. The Court found both the show cause notice and the impugned order to be vague and non-speaking, necessitating their quashing. The order of cancellation was deemed cryptic, violating natural justice principles and entailing civil and penal consequences for the dealer. The Court set aside the show cause notices and consequential orders in all the writ applications, remitting the matters for denovo proceedings in accordance with the law.

Issue 2: Procedural Lapse
The Court referred to a previous decision regarding procedural lapses by State Authorities in cancellation matters under the GGST Act, 2017. The present cases were found to be covered by the earlier judgment, emphasizing the importance of procedural correctness in such matters. The Court highlighted the need for authorities to adhere to the directions issued in the previous case, ensuring procedural fairness and compliance with legal requirements.

Conclusion
The High Court, comprising Honourable Ms. Justice Nisha M. Thakore, disposed of the writ applications analogously, quashing the show cause notices and consequential orders due to procedural irregularities and violations of natural justice. The matters were remitted for fresh proceedings, emphasizing the significance of procedural correctness and adherence to legal principles in matters concerning cancellation of registration under the GGST Act, 2017.