2023 (6) TMI 632 - HC - GST

Cancellation of GST registration of petitioner - SCN simply states the reason for issuance of notice (as in case, Registration has been obtained by means of fraud, wilful misstatement or suppression of facts) - HELD THAT - From the show-cause notice, it is clear that the respondents have not provided in details to the petitioner, how the petitioner has committed fraud, wilful misstatement or suppression of facts; while obtaining the registration, no documents were supplied to the petitioner alongwith the said show-cause notice. This Court has considered in the similar type of case of Aggrawal Dyeing 2022 (4) TMI 864 - GUJARAT HIGH COURT holding that According to the learned AGP, it is in such circumstances that the show cause notices and impugned orders without any details are being forwarded to the dealers. This hardly can be a valid explanation for the purpose of issuing such vague show cause notices and vague final orders cancelling the registration. From the aforesaid order, it reveals that, in the said case as similar type of contentions were raised on behalf of the respondent. However, this Court has quashed and set aside the similar type of show-cause notice issued to the concerned petitioner for cancellation of registration. The present matter is squarely covered by the aforesaid order passed by this Court, therefore, the impugned show-cause notice deserves to be quashed and set aside on the similar grounds. The impugned show-cause notice dated 06.01.2023, being without reasons, is cryptic and deserves to be quashed and set aside, and is hereby quashed and set aside - Petition allowed.

Summary

Issues Involved:
The issues involved in the judgment include the validity of a show-cause notice issued under the Central Goods and Service Tax Act, 2017, specifically focusing on the lack of specific details provided in the notice to the petitioner, leading to a challenge seeking to quash and set aside the notice.

Details of the Judgment:

Validity of Show-Cause Notice:
The petitioner filed a petition under Article 226 of the Constitution of India challenging a show-cause notice dated 06.01.2023 issued by the respondent authorities under the Central Goods and Service Tax Act, 2017. The notice alleged that the petitioner's registration was obtained through fraud, wilful misstatement, or suppression of facts. The petitioner contended that the notice lacked specific details, making it impossible for them to respond effectively.

Arguments by Petitioner:
The petitioner's advocate argued that the show-cause notice was vague and did not provide any particular facts to enable a proper response. Citing various decisions, including one by the High Court, the advocate urged the court to quash the notice, highlighting similar cases where such notices were set aside.

Arguments by Respondent:
The respondent's advocate referred to the Affidavit-in-reply, acknowledging a technical glitch in the system that prevented the inclusion of specific details in the notice. The respondent contended that due to this glitch, the necessary information was not provided to the petitioner.

Court's Observations:
The Court noted that the show-cause notice lacked specific details on how the alleged fraud or misstatement occurred, emphasizing the importance of providing such information for a fair hearing. Referring to previous judgments, the Court highlighted the necessity of detailed notices for effective communication and fair proceedings.

Judgment and Direction:
Considering the arguments and precedents, the Court allowed the petition and quashed the show-cause notice dated 06.01.2023. The Court directed the respondent authorities to issue a fresh notice with detailed reasons and provide a reasonable opportunity for a hearing. The registration of the petitioner was ordered to be restored immediately, with liberty granted for the petitioner to respond to the new notice with necessary objections and documents.

Conclusion:
The Court clarified that it did not delve into the merits of the case but focused on the procedural aspects related to the show-cause notice. The judgment emphasized the importance of providing specific details in such notices to ensure fairness and effective communication in legal proceedings.