2024 (6) TMI 1074 - HC - GST

Cancellation of GST registration of the petitioner - SCN does not mention any date, time or venue where the petitioner had to appear - violation of principles of natural justice - HELD THAT - As per the respondents, there is material available to establish that the petitioner firm was involved in big scam of evasion of tax. However, it is conceded that the said material has not been provided to the petitioner in support of the show cause notice. The impugned order dated 19.09.2023 is set aside. Proper Officer is directed to furnish all material that the Proper Officer may have in support of the show cause notice to the petitioner within one week from today - petition disposed off.

Summary

Issues Involved:
Cancellation of GST registration based on evasion of tax scam, lack of proper communication and opportunity for the petitioner to respond, failure to provide supporting material to the petitioner.

Analysis:
The petitioner challenged the cancellation of their GST registration, which was based on an allegation of involvement in a tax evasion scam. The cancellation order was issued following a show cause notice dated 20.07.2023, which cited a letter from the Additional Commissioner regarding the alleged scam. The petitioner was required to respond to the notice but failed to do so. The petitioner raised concerns about not receiving a copy of the letter or further information, as well as the lack of specific details about when and where they were supposed to appear.

The respondents acknowledged that there was material implicating the petitioner in the tax evasion scam but admitted that this material was not shared with the petitioner to support the show cause notice. In light of these discrepancies, the court set aside the impugned order of cancellation dated 19.09.2023. The Proper Officer was directed to provide all supporting material to the petitioner within one week and allowed the petitioner to file a reply within the same timeframe. Subsequently, the Proper Officer was instructed to re-adjudicate the show cause notice within a maximum period of two weeks after granting the petitioner an opportunity for a personal hearing.

The court disposed of the petition with the specified directions, emphasizing the petitioner's right to pursue legal remedies if dissatisfied with any future actions or orders by the respondents. This judgment highlights the importance of procedural fairness, adequate communication, and the right to respond when facing allegations of non-compliance or misconduct in tax matters.