2021 (9) TMI 373 - HC - GST

Cancellation of registration of the writ petitioner - an opportunity of being heard not provided to assessee or provided on the date of public holyday - violation of principles of natural justice - TNGST Act - HELD THAT - On instructions it is submitted by learned Revenue counsel that no personal hearing was held on 02.10.2019 or thereafter. This by itself becomes a ground to set aside the impugned order and relegate the matter back to respondent. However, owing to the admitted error in SCN, this Court deems it appropriate to set aside the same also with a directive to reissue the SCN after eliminating the error. The impugned order is set aside solely on the ground that show cause notice dated 25.09.2019 has been issued inadvertently by fixing personal hearing on a public holiday on account of Gandhi Jayanthi i.e., 02.10.2019 (at 11.00 a.m.) which error is regretted. There is no disputation or disagreement that no personal hearing was held and it is submitted that SCN is a computer generated notice which has caused error - petition disposed off.

Summary

Issues:
1. Cancellation of registration under Section 29 of the Tamil Nadu Goods and Service Tax Act, 2017 without proper hearing.
2. Errors in the show-cause notice dated 25.09.2019 leading to cancellation of registration.
3. Appeal under Section 107 disposed of solely on the ground of limitation without considering merits.
4. Setting aside the impugned order and the show-cause notice due to errors in the notice fixing a hearing on a public holiday.
5. Directives for the respondent to issue a fresh show-cause notice and consider the response within six weeks.

Analysis:
1. The petitioner challenged the cancellation of registration under Section 29 of the TNGST Act, citing a lack of opportunity for a proper hearing as mandated by the proviso to Section 29(2). The impugned order did not provide reasons for cancellation and was deemed non-speaking. Moreover, the show-cause notice fixing a personal hearing on a public holiday raised procedural irregularities, leading to the cancellation being set aside.

2. The errors in the show-cause notice dated 25.09.2019, which fixed a hearing on a public holiday, were acknowledged by the respondent-department. The inadvertent error in issuing the notice without conducting the scheduled hearing became a ground for setting aside both the impugned order and the show-cause notice.

3. The appeal under Section 107 was disposed of solely on the ground of limitation without delving into the merits of the case. This procedural lapse highlighted the need for a fresh consideration of the matter after rectifying the errors in the show-cause notice.

4. The High Court set aside the impugned order and the show-cause notice due to the acknowledged errors in fixing the hearing on a public holiday. The directive was issued for the respondent to reissue the show-cause notice, consider the petitioner's response, and pass fresh orders within six weeks from the date of the judgment.

5. In addition to setting aside the impugned order and the show-cause notice, the Court directed the respondent and relevant authorities to make necessary software changes to prevent similar errors in the future. The writ petition was disposed of with the specified directives, and connected miscellaneous petitions were closed without any order as to costs.