2021 (2) TMI 292 - HC - GST

Restoration of cancelled registration of the petitioner - no show-cause notice in form GST REG-17 was issued - impugned order cancelling the registration is bereft of any details - HELD THAT - The learned AGP very fairly submitted that the order impugned dated 04.06.2020 is not only bereft of any material particulars, but the same has been passed without issuing the show-cause notice in Form GST REG-17. This writ application succeeds and is hereby allowed. The impugned order dated 04.06.2020 is quashed and set aside. The matter is remitted to the Commercial Tax Officer, Ghatak-7, Ahmedabad, with a direction that, if he intends to pass a fresh order of cancellation of registration, then he shall first issue show-cause notice in Form GST REG-17 giving an opportunity of hearing to the writ applicant and thereafter, pass an appropriate order.

Summary

Issues:
Challenge to impugned order cancelling GST registration without show-cause notice and lack of details in the order.

Analysis:
The writ applicant sought relief through a writ application under Article 226 of the Constitution of India, requesting the quashing of the impugned order dated 04.06.2020 that cancelled the registration. The applicant also sought a direction to recall the cancellation order and restore the registration, along with a stay on the operation of the cancellation order. The primary issue revolved around the absence of a show-cause notice in Form GST REG-17 and the lack of details in the cancellation order. The Court noted that the applicant was not given an opportunity to present their case before the registration was cancelled.

During the hearing, it was argued that the impugned order lacked material particulars and was issued without following the due process of issuing a show-cause notice. The learned AGP representing the State Respondents conceded that the order was deficient in these aspects. Consequently, the Court allowed the writ application, quashed the impugned order dated 04.06.2020, and remitted the matter to the Commercial Tax Officer. The Officer was directed to issue a show-cause notice in Form GST REG-17, provide a hearing to the applicant, and then make a decision on the cancellation of registration. The Court emphasized that if the Officer deems fit to cancel the registration, a fresh show-cause notice and order should be issued; otherwise, the original registration should be restored in accordance with the law. The Court disposed of the writ application accordingly, ensuring due process and fairness in the proceedings.