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2022 (4) TMI 467 - HC - GSTCancellation of GST registration of petitioner - ex-parte order was passed - violation of principles of natural justice - HELD THAT - On bare perusal of the the contents of the show cause notice as well as the impugned order, it is found that the said SCN is absolutely vague, bereft of any material particulars and the impugned order is also vague and a nonspeaking order. The impugned order dated 22.02.2022 is set aside and matter remitted to the respondent No.2 for denovo proceedings in accordance with law. Petition allowed by way of remand.
Issues:
1. Challenge to show-cause notice and order for cancellation of registration under the Gujarat Goods and Service Tax Act, 2017. 2. Validity of the show-cause notice and the subsequent ex-parte order of cancellation. 3. Interpretation of the contents of the show-cause notice and the order for cancellation. 4. Quashing and setting aside the impugned order and restoration of GST registration. Issue 1: Challenge to Show-Cause Notice and Order for Cancellation of Registration: The writ applicant sought relief through a writ application under Article 226 of the Constitution of India, challenging a show-cause notice dated 14.02.2022 and an ex-parte order of cancellation of registration passed by the State Tax Officer, Ghatak-13, Ahmedabad. The applicant requested the court to quash the show-cause notice and the order, and direct the restoration of the registration bearing a specific number. Issue 2: Validity of the Show-Cause Notice and the Subsequent Ex-Parte Order of Cancellation: The show-cause notice was issued under Section 29 of the CGST Act, 2017, citing reasons for cancellation, including suspicions regarding the dealer and the absence of documents at the business premises. The notice required a reply within seven days and a personal hearing. Subsequently, an ex-parte order of cancellation was passed on 22.02.2022 due to the applicant's failure to respond and appear for the hearing. The court noted that the notice and the order were vague and lacked essential particulars, rendering them non-speaking orders. Issue 3: Interpretation of the Contents of the Show-Cause Notice and the Order for Cancellation: Upon review, the court found the show-cause notice and the impugned order to be deficient in substance, lacking clarity and specificity. The court emphasized that the notice and the order did not provide sufficient details or reasoning for the proposed cancellation of registration. Consequently, the court deemed the order of cancellation as arbitrary and without proper basis, leading to its quashing. Issue 4: Quashing and Setting Aside the Impugned Order and Restoration of GST Registration: After considering the arguments presented by the counsel for the writ applicant and the respondents, the court concluded that the show-cause notice and the order for cancellation were inadequate and vague. Therefore, the court quashed the order dated 22.02.2022 and remitted the matter to the concerned authority for fresh proceedings in accordance with the law. As a result, the court directed the restoration of the GST registration, as the cancellation order was deemed invalid. In conclusion, the High Court of Gujarat, through a detailed analysis, set aside the impugned order of cancellation of GST registration, emphasizing the importance of providing clear and specific grounds in show-cause notices and orders to ensure procedural fairness and legal validity.
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