2023 (9) TMI 791 - HC - GST

Suspension of GST registration of petitioner - non-compliance of the provisions of GST Act/Rules - no decision has been taken by the adjudicating authority till date - HELD THAT - The writ petition is being disposed of at this stage without calling for Counter Affidavit of the respondents for the reason that no decision has yet been taken at the level of the respondent No.3 on the show cause notice dated 08.02.2023. A bare perusal of the show cause notice shows that no specific contraventions of GST Act or the Rules made thereunder have been alleged. The show cause notice is vague and it would be difficult for any noticee to submit a categorical reply, if contraventions are not clearly alleged. Meanwhile, petitioner s business continues to suffer because of suspension of the GST registration since February, 2023. It is deemed proper to direct the respondent No. 3 to issue a fresh show cause notice alleging the specific contraventions of the TGST Act and the Rules made thereunder within a period of 1(one) week from today giving 1(one) week s time to the petitioner to offer his specific replies with supporting documents - petition disposed off.

Summary

Issues:
The issues involved in the judgment are the suspension of GST registration due to alleged non-compliance of GST Act/Rules, vagueness in the show cause notice, and the impact on the petitioner's business.

Suspension of GST Registration:
The petitioner's GST registration was suspended for alleged non-compliance with GST Act/Rules. Despite submitting relevant documents in response to a show cause notice, the registration remained suspended with no decision taken by the adjudicating authority. The petitioner's business has been adversely affected since February 2023 due to the suspension.

Vagueness in Show Cause Notice:
The show cause notice issued to the petitioner for cancellation of registration was deemed vague as it did not specify the contraventions of the GST Act or Rules made thereunder. The lack of specific allegations made it difficult for the petitioner to provide a clear response. This vagueness further prolonged the petitioner's business suffering.

Judgment:
The High Court directed the respondent to issue a fresh show cause notice within one week, clearly alleging the specific contraventions of the TGST Act and Rules. The petitioner was to be given one week to respond with supporting documents. A decision on the fresh notice and the petitioner's reply was to be made within two weeks, ensuring adherence to timelines. The Court emphasized that failure to comply with the timelines would be viewed seriously. The writ petition was disposed of without commenting on the merits of the case.