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2022 (7) TMI 1167 - HC - GSTViolation of principles of natural justice - petitioner was afforded an opportunity of personal hearing in terms of the proviso to Section 29 (2) of the Karnataka Goods and Services Tax Act or not - HELD THAT - The proviso to Section 29 (2) of the Karnataka Goods and Services Tax Act specifically observes that there shall be no cancellation of registration without giving an opportunity of being heard. Accordingly, during the course of proceedings relating to cancellation of registration, there is a statutory mandate that the assessee should be given an opportunity of personal hearing. The authorities concerned in such proceedings is required to specifically state the time and date as regards personal hearing provided to the assessee. In light of the absence of such reference in the order at Annexure-B, the order at Annexure-B deserves to be set aside and the matter be remitted for fresh consideration before the Authority. The matter is remitted for fresh consideration before the Authority to be disposed off in terms of the observations made above and the proceedings are directed to be commenced from the stage after issuance of notice dated 06.02.2019 - Petition allowed by way of remand.
Issues:
1. Opportunity of personal hearing not provided before cancellation of registration under Karnataka Goods and Services Tax Act. Analysis: The petitioner sought a writ of certiorari to quash the show cause notice and the order for cancellation of Registration, arguing that he was not personally heard during the proceedings leading to the cancellation. The petitioner contended that the show cause notice did not specify a specific date for availing the opportunity of personal hearing, as required by the Karnataka Goods and Services Tax Act and the Central Goods and Services Act. The Court observed that the show cause notice did not mention a specific date for personal hearing, and the order for cancellation only stated that the reply and submissions were examined during the hearing. It was noted that the petitioner was not clearly provided with an opportunity for personal hearing as mandated by the proviso to Section 29 (2) of the Karnataka Goods and Services Tax Act. The proviso to Section 29 (2) of the Karnataka Goods and Services Tax Act explicitly states that cancellation of registration cannot occur without giving the assessee an opportunity to be heard. Therefore, in proceedings related to cancellation of registration, it is essential to provide the assessee with a chance for personal hearing, including specifying the time and date for the same. The absence of such details in the order necessitated setting aside the order for cancellation and remitting the matter for fresh consideration before the Authority. Consequently, the Court set aside the order for cancellation and directed the matter to be reconsidered by the Authority, starting from the stage after the issuance of the notice. The endorsement related to the cancellation was also set aside. The petitioner's contentions regarding the show cause notice were kept open to be presented to the respondent Authority for consideration. In conclusion, the writ petition was disposed of in light of the above findings, emphasizing the importance of providing an opportunity for personal hearing before taking any action such as cancellation of registration under the relevant tax laws.
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