2024 (2) TMI 64 - HC - GST

Cancellation of GST registration - registration obtained by means of fraud, willful misstatement or suppression of facts - SCN does not specify the cogent reason - violation of principles of natural justice - HELD THAT - The show cause notice was issued to the petitioner on 18.01.2024. However, the notice does not specify any cogent reason. The show cause notice requires the petitioner to appear before the undersigned i.e. authority issuing the notice. Notice does not give the name of the officer or place or time where the petitioner has to appear - Further, it is noticed that the Show Cause Notice does not provide petitioner the complete information. In view of the peculiar facts and circumstances of the case, the petition is disposed of directing the respondents to provide, within one week, all the material to the petitioner in support of the Show Cause Notice. On the receipt of the said material, petitioner shall file a reply within one week thereof. Respondent thereafter shall adjudicate the Show Cause Notice within a maximum period of two weeks - Opportunity of personal hearing shall also be given to the petitioner. Petition disposed off.

Summary

Issues involved:
The judgment deals with the legality of a Show Cause Notice issued under Section 29(2)(e) of the GST Act, alleging registration obtained through fraud, willful misstatement, or suppression of facts.

Details of the Judgment:
The petitioner challenged the Show Cause Notice dated 18.01.2024, arguing that it lacked specific reasons for cancellation. The court accepted the notice and proceeded with the hearing. The respondents presented portal screenshots and an inspection report indicating the petitioner's absence at the mentioned premises.

The court observed that the notice failed to provide a clear reason and lacked essential details such as the officer's name, place, or time for appearance. Consequently, the court directed the respondents to furnish all relevant material to the petitioner within one week to support the Show Cause Notice. The petitioner was instructed to respond within a week, and the respondent was mandated to adjudicate the matter within two weeks, offering the petitioner an opportunity for a personal hearing.

Additionally, the court permitted the respondents to conduct a fresh inspection if necessary. The petition was disposed of under the specified terms, with a clarification that the court did not assess the merits of either party's contentions, preserving all rights and contentions for future consideration.