2023 (9) TMI 1183 - HC - GST

Cancellation of GST registration of petitioner with retrospective effect - It is the petitioners case that the second respondent authority is neither restoring the registered certificate nor revoking attachment of the bank account of the petitioners, hence this petition - HELD THAT - On perusal of the show cause notice for cancellation of registration as well as the order of cancellation, it appears that the respondent authorities have not followed the decision of this Court in the case of AGGARWAL DYEING AND PRINTING WORKS VERSUS STATE OF GUJARAT 2 OTHER (S) 2022 (4) TMI 864 - GUJARAT HIGH COURT where it was held that The assignment of reasons is imperative in nature and the speaking order doctrine mandates assigning the reason which is the heart and soul of the decision and said reasons must be the result of independent re-appreciation of evidence adduced and documents produced in the case. The impugned order of cancellation of registration is quashed and set aside with a liberty to the respondent to issue a fresh notice with detailed reasons for cancellation, if any recorded by the respondent authorities. Petition disposed off.

Summary

Issues:
The issues involved in this case include the cancellation of registration certificate under the GST Acts, provisional attachment of the bank account of the petitioners, and rejection of the application for revocation of cancellation of registration.

Cancellation of Registration Certificate:
The petitioner sought relief through a writ petition to quash the impugned order retrospectively cancelling the registration certificate. The respondent authorities had provisionally attached the bank account of the petitioners without proper adjudication proceedings. The court found that the cancellation order did not provide reasons as required by the decision in Aggarwal Dyeing case. The court quashed the cancellation order and granted liberty to issue a fresh notice with detailed reasons if any.

Provisional Attachment of Bank Account:
The petitioners also sought relief to quash the provisional attachment of their bank account. It was noted that the petitioner did not press for this relief but requested the respondent authorities to decide the show cause notice within a stipulated time. The learned Assistant Government Pleader agreed that the authorities would decide on the show cause notice within four weeks.

Rejection of Application for Revocation of Cancellation:
The petitioners had applied for revocation of the cancellation of registration, which was rejected by the second respondent authority. The court did not delve into the merits of the case but focused on the procedural lapses and violation of natural justice. The decision in the Aggarwal Dyeing case was cited, emphasizing the importance of providing detailed reasons and evidence to the dealer before passing a cancellation order.

Conclusion:
In conclusion, the High Court quashed the cancellation order of the registration certificate with liberty to issue a fresh notice with detailed reasons. The court disposed of the petition with no orders as to costs, as the respondent authorities agreed to decide on the show cause notice within four weeks.