9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 1122 - HC - GSTCancellation of GST registration of petitioner - discontinuance of business operations - no specific ground in SCN for proposing the cancellation of the petitioner s GST Registration - violation of principles of natural justice - HELD THAT - It is settled law that a Show Cause Notice must specify the reasons for the proposed action so as to enable the noticee to respond to the same. In the present case, the impugned Show Cause Notice did not provide any clue as to which provisions of the GST Act or the GST Rules were allegedly violated by the petitioner. The impugned Show Cause Notice was incapable of eliciting any meaningful response. Plainly, the impugned order passed pursuant to the impugned Show Cause Notice cannot be sustained for the same reason - It is relevant to note that the only reason provided in the impugned order for cancelling the petitioner s GST registration is that the petitioner had not submitted any response to the impugned Show Cause Notice and had not appeared for a personal hearing. The petitioner neither responded to the impugned Show Cause Notice nor appeared before the concerned Officer on 17.06.2022 for a personal hearing. Notwithstanding the same, for the reasons as aforesaid, neither the impugned Show Cause Notice nor the impugned order can be sustained. The same are, accordingly, set aside - reasons for rejecting the petitioner s application for cancellation as reflected in the order dated 10.06.2022 is that the petitioner had not responded to the reply or appeared for the personal hearing. However, it is not disputed that no notice of personal hearing was communicated to the petitioner. It is considered apposite to set aside the order dated 10.06.2022 rejecting the petitioner s application and remand the matter to the concerned officer to consider afresh - petition allowed by way of remand.
Issues Involved:
The issues involved in the judgment are the cancellation of GST registration with retrospective effect, the validity of the Show Cause Notice, rejection of the application for cancellation of GST registration, and the need for specific reasons in the notice. Cancellation of GST Registration: The petitioner challenged the cancellation of their GST Registration with retrospective effect from 02.07.2017. The impugned order was issued based on a Show Cause Notice that did not disclose specific reasons for the proposed cancellation. The court noted that the Show Cause Notice did not specify the provisions allegedly violated by the petitioner, rendering it incapable of eliciting a meaningful response. The impugned order was set aside as it lacked clarity on the statutory violations leading to the cancellation. Validity of Show Cause Notice: The court emphasized that a Show Cause Notice must provide clear reasons for the proposed action to enable the affected party to respond effectively. In this case, the impugned Show Cause Notice failed to indicate the specific grounds for the cancellation of GST Registration, making it inadequate for the petitioner to address the allegations. Consequently, the court held that the impugned Show Cause Notice and the subsequent order could not be sustained and were set aside. Rejection of Application for Cancellation: The petitioner's application for the cancellation of GST Registration with effect from 30.04.2022 was rejected on the grounds of non-response to a notice requesting certain documents and non-appearance for a personal hearing. However, the court observed discrepancies in the rejection order, noting that no notice of personal hearing was communicated to the petitioner. The court deemed the rejection order auto-generated and unsigned, leading to the decision to set it aside and remand the matter for fresh consideration. Need for Specific Reasons in Notice: The court stressed the importance of providing specific reasons in notices related to legal actions, such as the cancellation of registrations. It directed the concerned officer to reconsider the petitioner's application for cancellation, allowing the petitioner to submit additional documents within a specified timeframe and ensuring a fair opportunity for the petitioner to present their case. The judgment concluded by disposing of the petition and the pending application in line with the aforementioned decisions.
|
