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2023 (9) TMI 1180 - HC - GSTCancellation of GST registration of petitioner - vague reason stated in SCN - respondent never verified registered premises of the petitioner - HELD THAT - The Court had held that by issuing a cryptic show cause notice, the authorities had violated the principles of natural justice. From the show cause notice, the reasons for cancellation are not decipherable therefrom. SCN set aside - The petition is allowed solely on the ground of violation of principles of natural justice.
Issues Involved:
1. Validity of the show cause notice for cancellation of GST registration. 2. Adherence to principles of natural justice. Issue 1: Validity of the Show Cause Notice for Cancellation of GST Registration The petitioner, M/s. Suresh Industries, challenged the show cause notice dated 07.07.2023, issued u/s 29 of the CGST Act, 2017, read with Rule 22(1) of the Central Goods and Service Tax Rules, 2017, for cancellation of their GST registration. The petitioner argued that the notice was vague and lacked specific reasons, making it impossible to respond adequately. The petitioner also claimed that the respondent did not verify the registered premises and failed to provide additional documents or elaborate reasons for the notice. Mr. Jaimin Dave, counsel for the petitioner, contended that the notice was vague and referenced the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat, which outlined the procedure for cancellation of registration. The court observed that the issue was covered by the decision in Aggarwal Dyeing and Printing Works, emphasizing the necessity of detailed reasons in the show cause notice. Issue 2: Adherence to Principles of Natural JusticeThe court highlighted that the principles of natural justice were violated due to the cryptic nature of the show cause notice. The court referenced several Supreme Court judgments that stressed the importance of providing reasons in support of decisions, which are essential for ensuring fairness and transparency in the decision-making process. The court noted that the absence of reasons in the show cause notice amounted to a denial of a reasonable opportunity of hearing, resulting in a miscarriage of justice. The court quashed and set aside the show cause notice dated 07.07.2023 and all consequential proceedings, solely on the ground of violation of principles of natural justice. The court granted liberty to the respondent to issue a fresh notice with detailed reasons and provide a reasonable opportunity of hearing to the petitioner. The court clarified that it had not examined the merits of the case and allowed the petitioner to respond to the new notice with necessary documents. Rule is made absolute to the above extent.
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