2023 (4) TMI 1121 - HC - GST

Cancellation of GST registration of petitioner - registration has been obtained by means of fraud, willful misstatement or suppression of facts or not - SCN challenged by the petitioner on the ground that the same is one line cryptic notice and principles of natural justice has not been followed by the respondent authority by not giving of any opportunity of being heard - HELD THAT - The respondent authority issued another show cause notice for cancellation of registration. The said show cause notice is on record. In view of the developments and the situation emerging i.e. issuance of second show cause notice of even date, ends of justice would be served if this petition is disposed of by passing the following directions (i) The petitioner shall be given time of 15 days from the date of this order to submit reply and documents in support of reply. (ii) The date of personal hearing within a period of 15 days thereafter also be fixed to provide a reasonable opportunity of being heard to the petitioner. (iii) Once the reply and personal hearing is complete, the authority within a period of three weeks thereafter shall render decision on merits. Petition allowed.

Summary

Issues involved:
The issues involved in the judgment include quashing and setting aside a show cause notice, lack of natural justice in the issuance of the notice, challenge to the notice on the grounds of being cryptic, and the cancellation of registration based on certain allegations.

Quashing of Show Cause Notice:
The petitioner sought direction to quash and set aside the show cause notice dated 26.8.2022 issued by respondent No.2. The notice alleged that registration was obtained through fraud, willful misstatement, or suppression of facts. The petitioner challenged the notice citing lack of reasoning, details, and violation of principles of natural justice by not providing an opportunity to be heard.

Cancellation of Registration:
Another show cause notice issued on the same date referred to Section 29 of the Central Goods and Service Tax Act, 2017 for cancellation of registration. The reasons cited for cancellation included not conducting business from the declared place and issuing invoices without supplying goods or services, in violation of the Act or rules made thereunder.

Contentions of the Parties:
The petitioner's advocate argued that the show cause notice lacked details and reasoning, depriving the petitioner of a fair opportunity to respond. The Assistant Government Pleader for the respondents defended the notice, stating it was issued based on available material and that the petitioner failed to make any representation before challenging the notice in court.

Court Directions:
The court directed the petitioner to submit a reply and supporting documents within 15 days, followed by a personal hearing within the next 15 days to ensure a fair opportunity to be heard. The competent authority was instructed to make a decision on the merits within three weeks after the completion of the reply and hearing process. The court quashed and set aside the impugned notice dated 28.6.2022 to facilitate the fresh decision-making process.

Conclusion:
The court clarified that its order was limited to the specific issue at hand and did not express any opinion on the facts or merits of the case. The petition was allowed in the specified terms and extent, ensuring procedural fairness in the further proceedings related to the show cause notice and registration cancellation.