Show Cause Notice not issued in proper form is void in nature

[CA Bimal Jain]

The Hon’ble Kerala High Court in MR. KUNHALAVI N VERSUS THE STATE TAX OFFICER, THE JOINT COMMISSIONER (APPEALS) STATE GOODS & SERVICES TAX DEPARTMENT, POOTHOLE, THRISSUR. - 2024 (6) TMI 1241 - KERALA HIGH COURT, set aside the order for cancellation of registration, thereby holding that show cause notice not issued in proper form is void in nature in case where the notice was issued in Form GST REG-31 instead of required Form GST REG-17.

Facts:

Kunhalavi N (“the Petitioner”), filed a writ petition against order dated July 13, 2022 (“the Impugned Order”) passed by the Revenue Department (“the Respondent”) on the ground of not filing of returns and not responding to the show cause notice (“the SCN”) issued for which Petitioner couldn’t file reply as he was busy in the treatment of his father. Also, the Respondent issued notice in Form GST-REG-31 instead of required Form GST-REG 17 for issuance of SCN regarding cancellation of GST Registration. Also, the SCN issued by the Respondent is vague in nature.

Issue:

Whether the Show cause notice not issued in proper form is void in nature?

Held:

The Hon’ble Kerala High Court in MR. KUNHALAVI N VERSUS THE STATE TAX OFFICER, THE JOINT COMMISSIONER (APPEALS) STATE GOODS & SERVICES TAX DEPARTMENT, POOTHOLE, THRISSUR. - 2024 (6) TMI 1241 - KERALA HIGH COURT held as under:

• Noted that, when the statue provides for a thing to be done in a particular manner, then it has to be done as per the procedure prescribed.
• Opined that, as the SCN has been issued in Form GST REG-31 instead of Form GST REG-17 as required under Rule 22(1) of the Central Goods and Services Tax Rules (“the CGST Rules”), the Impugned Order issued for cancellation of GST registration is without jurisdiction.
• Held that, the Impugned Order is set aside
• Directed that, the Petitioner is required to file the defaulted returns along with tax, late fee, interest, penalty within the period of two weeks from the date on which the registration of the Petitioner is restored in compliance with the judgment. 

(Author can be reached at [email protected])