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2022 (4) TMI 864 - HC - GST


  1. 2025 (3) TMI 1314 - HC
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  11. 2024 (9) TMI 1005 - HC
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  19. 2024 (3) TMI 548 - HC
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  21. 2024 (2) TMI 476 - HC
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  23. 2024 (2) TMI 239 - HC
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  26. 2024 (1) TMI 320 - HC
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  51. 2022 (12) TMI 1102 - HC
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  53. 2022 (12) TMI 855 - HC
  54. 2022 (12) TMI 854 - HC
  55. 2022 (12) TMI 853 - HC
  56. 2022 (12) TMI 813 - HC
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  61. 2023 (1) TMI 979 - HC
  62. 2022 (10) TMI 676 - HC
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Issues Involved:

1. Validity and sustainability of the show cause notice and the consequential order canceling GST registration.
2. Adherence to principles of natural justice in the cancellation process.
3. Proper communication and detailing in show cause notices and final orders.
4. Appellate authority's handling of delay in filing appeals and condonation of delay.

Issue-wise Detailed Analysis:

1. Validity and Sustainability of the Show Cause Notice and the Consequential Order Canceling GST Registration:

The court examined whether the show cause notice seeking cancellation of registration and the consequential order canceling registration under the GST Act, 2017, were valid and sustainable in the eye of law. The court found that the show cause notices issued were devoid of specific details and particulars. The notices were vague, merely stating generic reasons like "not filed returns for a continuous period of six months" without elaborating on specifics. This lack of detail made it difficult for the recipients to respond effectively, rendering the cancellation orders unsustainable.

2. Adherence to Principles of Natural Justice in the Cancellation Process:

The court emphasized that the principles of natural justice must be adhered to in the cancellation process. It was noted that the respondent authority failed to extend sufficient opportunity for a hearing before passing the impugned orders. The orders were non-speaking and cryptic, lacking decipherable reasons for cancellation. The court held that the basic principles of natural justice were violated, leading to the quashing of the orders.

3. Proper Communication and Detailing in Show Cause Notices and Final Orders:

The court directed that show cause notices and final orders must contain all necessary details and information to enable the dealer to respond effectively. The court noted that the current practice of issuing vague notices and orders due to technical glitches in the portal was unacceptable. The court mandated that until the technical issues are resolved, the department should issue show cause notices and final orders in physical form, containing all material particulars, and communicate them to the dealer via RPAD (Registered Post with Acknowledgment Due).

4. Appellate Authority's Handling of Delay in Filing Appeals and Condonation of Delay:

The court criticized the appellate authority for mechanically disposing of appeals on the ground of delay without considering the peculiar circumstances of each case. The court highlighted the need for a fair and reasonable opportunity of hearing, especially when the delay was due to genuine reasons such as lack of knowledge of the new tax regime or the impact of the COVID-19 pandemic. The court emphasized that the appellate authority should adopt a more lenient approach in condoning delays to ensure justice.

Conclusion:

The court allowed the writ applications on the ground of violation of principles of natural justice. It quashed the respective show cause notices and consequential orders canceling registration, granting liberty to the respondent to issue fresh notices with detailed reasons and provide a reasonable opportunity of hearing before passing any orders. The court's directions aimed to reduce unnecessary litigation and ensure that the procedural aspects are scrupulously followed by the authorities.

 

 

 

 

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