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2023 (3) TMI 680 - HC - GSTCancellation of the GST registration of petitioner - vague SCN issued - violation of principles of natural justice - HELD THAT - After having carefully perused all the material documents placed in this appeal, it is found that the show cause notice, which was issued to the appellants is devoid of any material and is absolutely vague. The appellants have not been informed as to what was the alleged fraud and alleged willful mis-statement made by the appellants. The appellants denied the allegations. However, the authority confirmed the proposal of cancellation by a single line order once again without any reason. When the matter was carried on appeal to the appellate authority, certain fresh facts have been brought in and an elaborate order has been passed by the appellate authority. It is no doubt true that an appellate authority or any administrate or quasi-judicial authority is expected to give detailed reasons to support its conclusion. Nevertheless, the authority has to consider the aspect as to whether the original authority had, at the first instance assigned any reason in support of its conclusion. On examining the order passed by the original authority, it is found that the same is devoid of any reason. If that be so, the appellate authority ought to have set aside such an order and remanded the matter back to the original authority instead of taking the trouble of trying to validate the order with certain reasons by bringing in fresh facts - the registration granted to the appellants has to be restored. The appeal and the writ petition are disposed of and the order passed by the appellate authority and the original authority are set aside and the original authority is directed to restore the appellants registration of the address at 3rd Floor, 119 Cotton Street, Kolkata 700 007 within a period of seven days from the date of receipt of the server copy of this judgment and order.
Issues:
The judgment deals with the cancellation of registration under the WBGST Act, 2017 and the subsequent appeal against the cancellation. Cancellation of Registration: The main issue in this appeal was whether the cancellation of registration granted to the appellants under the WBGST Act, 2017 was justified. The Court found that the show cause notice issued to the appellants lacked material and was vague, as it did not specify the alleged fraud or willful misstatement. The authority confirmed the cancellation without providing any reason, and subsequent orders were also non-speaking. The appellate authority failed to provide detailed reasons and should have considered whether the original authority had given any reason initially. The Court concluded that the cancellation was unjustified, especially since the appellants had applied for an amendment of their registration after purchasing a property on the 3rd Floor of a building. Amendment of Registration: The appellants had purchased a property on the 3rd Floor of a building and applied for an amendment to their registration to reflect the new address. The application was considered, an inspection was conducted, and the registration was amended to include the new address. The Court noted that any discrepancy in the original registration document, which showed the 1st floor as the address, was resolved through the subsequent registration amendment. Therefore, the issue became moot after the registration was amended to reflect the correct address. Decision and Order: The Court held that the registration granted to the appellants should be restored. It was noted that the appellants had promptly filed returns and paid all taxes and levies. The appeal and the writ petition were disposed of, and the orders of the appellate and original authorities were set aside. The original authority was directed to restore the appellants' registration at the 3rd Floor, 119 Cotton Street, Kolkata within seven days from the date of receipt of the judgment and order. No costs were awarded, and the parties were to be provided with a certified copy of the order upon compliance with legal formalities.
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