2024 (5) TMI 246 - HC - GST

Seeking revocation of cancelled petitioner s GST registration - HELD THAT - Considering the fair stand as taken by the respondents further adjudication of the petition is not called for. The impugned show cause notice as also the impugned orders cancelling the petitioner s registration is quashed and set aside with liberty to the respondents to issue a fresh show cause notice within two weeks from today. The show cause notice be adjudicated after following due procedure and after an opportunity to the petitioner of filing a reply and a personal hearing to be accorded to the petitioner. All contentions of the parties on the proposed proceedings are expressly kept open. The petition stands disposed of.

Summary

Issues involved:
The issues involved in the judgment are the legality of the show cause notice and orders cancelling the petitioner's GST registration under the Maharashtra Goods and Services Tax Act, and the lack of reasons provided to justify the cancellation.

Legal Judgment Summary:

Issue 1: Legality of Show Cause Notice and Orders:
The petitioner filed a petition under Article 226 of the Constitution of India seeking relief to quash the impugned show cause notice (SCN) dated 11.02.2024 and the subsequent orders dated 21.02.2022 and 04.04.2022 cancelling the petitioner's GST registration. It was contended that the cancellation was illegal and invalid due to the absence of reasons justifying it. Reference was made to past cases where similar issues were raised and orders were set aside for non-application of mind. The Court noted the lack of reasons provided for the cancellation.

Issue 2: Respondent's Stand and Court Decision:
Upon hearing the arguments, Ms. Chavan, learned AGP for the State, acknowledged the need for a reasonable view on the matter. By consent, it was agreed that the impugned SCN and orders could be set aside, allowing the respondents to issue a fresh SCN for proper adjudication. The Court appreciated the respondent's fair stand and decided not to further adjudicate the matter. The impugned SCN and orders were quashed with liberty to issue a fresh SCN within two weeks, ensuring due procedure, opportunity for reply, and a personal hearing for the petitioner.

Issue 3: Restoration of Registration and Future Actions:
As a result of quashing the impugned orders, the petitioner's GST registration was to be restored immediately. However, this restoration was without prejudice to the respondents' rights to take any other permissible actions under the law. The Court emphasized that all contentions regarding future actions were expressly kept open.

Conclusion:
The petition was disposed of with no costs, maintaining the rights of both parties for future proceedings. The judgment highlighted the importance of providing reasons for decisions and ensuring due process in matters concerning the cancellation of registrations under the GST Act.

This summary provides a detailed overview of the judgment, addressing each issue involved and the corresponding legal analysis and decisions made by the Bombay High Court.