2023 (4) TMI 250 - HC - GST

Service of SCN - Cancellation of GST registration of petitioner - HELD THAT - Subsequent to filling of the petition, there is no gainsaying that the detailed show cause notice was delivered to the petitioner. Therefore, the ground raised in the petition that notice was not sent with detailed reasons to the petitioner nor was uploaded on the portal, no longer remained available to be advanced. In view of the aforesaid developments and the situation emerging, this petition is disposed of by passing the following directions, (i) The petitioner shall be given time till 15th April, 2023 to submit its reply. (ii) The date of personal hearing within this period may also be fixed to provide the reasonable opportunity of being heard to the petitioner. (iii) The decision shall be rendered by the competent authority within three weeks from the date when the aforesaid exercise of hearing is completed. Petition allowed.

Summary

Issues involved:
The issues involved in this case are the validity of a show cause notice issued under the Goods and Services Tax Act, 2017, and the breach of natural justice due to lack of specific grounds mentioned in the notice.

Validity of Show Cause Notice:
The petitioner, a registered entity under the Gujarat Goods and Services Tax Act, 2017, challenged a show cause notice dated 20.6.2022 issued by the Assistant Commissioner, Goods and Services Tax, calling for cancellation of registration. The notice alleged possible fraud without specifying any details or grounds, leading to the petitioner's contention of vagueness and lack of opportunity to defend. The petitioner argued that the notice was deficient in providing specific grounds and supporting material, thereby breaching natural justice.

Breach of Natural Justice:
The petitioner contended that the show cause notice lacked specific details and material to substantiate the allegation of fraud, depriving them of a fair opportunity to defend their case. The respondent, through the Assistant Government Pleader, defended the notice under section 29 of the Goods and Services Tax Act, 2017, stating that a personal hearing opportunity was provided, but the petitioner did not attend deliberately. However, the petitioner later acknowledged the receipt of a detailed show cause notice, post the initial hearing date, and sought permission to file a reply and requested a fresh date for a personal hearing.

Court's Decision:
Considering the subsequent developments and acknowledgment of the detailed show cause notice by the petitioner, the court disposed of the petition by issuing specific directions. The court directed the petitioner to submit a reply by 15th April 2023 and set a new date for a personal hearing within that period. The competent authority was instructed to make a decision within three weeks from the completion of the hearing process. The court quashed and set aside the initial notice dated 20.6.2022 to allow for a fresh order to be passed. It was clarified that the court's directions were limited and did not delve into the merits of the case presented by either party.

Conclusion:
The court allowed the petition in the specified terms, granting the petitioner an opportunity to respond to the detailed show cause notice and ensuring a fair hearing process within a defined timeline.