2023 (12) TMI 667 - HC - GST

Restoration of Petitioner's GST registration - SCN for cancellation of registration was not received by the petitioner, as the petitioner was not in Mumbai - HELD THAT - There are much substance in the submission as urged on behalf of the petitioner. We may observe that in identical circumstances when similar show cause notice was issued without setting out any reasons, as also an order passed without application of mind, this Court had set aside the orders passed by the respondent in the decisions as relied on behalf of the petitioner and as noted by us hereinabove. The Court had quashed and set aside the show cause notices, however, remanding the proceedings for a fresh show cause notice to be issued in accordance with law by the designated officer. The respondents are directed to issue a fresh show cause notice in accordance with law within a period of three weeks from today. The petitioner shall file a reply to the show cause notice within two weeks after receipt of the show cause notice. The designated officer shall thereafter proceed to hear the petitioner and pass appropriate orders in accordance with law. Petition disposed off.

Summary

Issues Involved:
The issues in this case involve the legality of a show cause notice for the cancellation of GST registration, the subsequent order cancelling the registration, and the appeal process that followed.

Summary:
1. The petitioner filed a petition under Article 226 of the Constitution of India seeking various reliefs, including setting aside the show cause notice (SCN) and order cancelling GST registration, or remanding the matter for fresh adjudication. The petitioner argued that the SCN lacked reasons and the subsequent order cancelling registration was based on incorrect information.

2. The court noted that the SCN did not provide reasons for the cancellation and the subsequent order was passed without proper application of mind. The petitioner's appeal was rejected on the grounds of limitation, but the court found merit in the petitioner's argument based on previous court decisions setting aside similar show cause notices.

3. The court allowed the petition, setting aside the SCN and the order cancelling registration. The respondents were directed to issue a fresh SCN within three weeks, and the petitioner was given two weeks to respond. The court emphasized restoring the registration, subject to any future orders by the department.

4. The court kept all contentions open and disposed of the writ petition without costs, ensuring that the petitioner's GST registration was reinstated pending further proceedings.

5. The judgment highlighted the importance of following due process and providing reasons for administrative actions, emphasizing the principles of natural justice in such matters.