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TMI Blog2022 (5) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... to such show cause notice. Even the order impugned lacks the reasons. Even otherwise, the reason assigned by the respondent authority is without any basis being found in the show cause notice. Even in the show cause notice, seeking revocation of cancellation of registration, the authorities have choose to proceed on the ground other than the reason given in the original show cause notice seeking cancellation of registration. It appears from the reasons and findings recorded by the appellate authority that reliance is placed on the report dated 22.12.2021 submitted by the Joint Commissioner, CGST, Gandhinagar, having informed that the said tax payers did not hold any ground for revocation of cancellation of registration. In AGGARWAL DYEING AND PRINTING WORKS VERSUS STATE OF GUJARAT 2 OTHER (S) [ 2022 (4) TMI 864 - GUJARAT HIGH COURT ], the show cause notices seeking cancellation of registration of dealers so issued lack material particulars and this Court further found that final orders of cancellation of registration so passed were bereft of any reasons. This Court allowed the aforesaid writ applications solely on the ground of violation of principles of natural justice an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondents by an interim order and injunction of this Hon ble Court to forthwith make the GSTN registration No.24AAICA0476H1ZU operative provisionally and permit the Petitioner to file its GST returns from March 2021 onwards, on such terms and conditions as may deem fit to this Hon ble Court; (d) An ex-parte ad-interim relief in terms of prayer (d) above may kindly be granted; (e) Such other and further order or orders as may be deemed just and proper in the facts and circumstances of the present case may kindly be granted. 3. Thus, essentially, the writ applicants have challenged the legality and validity of the orders passed by the respondents Nos.2 to 4 purporting to cancel the registration granted to the writ applicant under the Central Goods and Services Tax Act, 2017 (for short the CGST Act, 2017). 4. The brief facts of Special Civil Application No.6650 of 2022 are summarized as under: 4.1 The writ applicant is a registered company incorporated under the Companies Act, 1956 and is engaged in the trading of various agriculture products such as Castor Seeds, Jeera, Chana, Coriander, R.M. Seeds, Turmeric, Cotton Oil Cake (Kapas Khali) etc. and is also e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te and time, the case will be decided ex parte on the basis of available records and on merits. Please note that your registration stands suspended with effect from 07/03/2021 Place: Gujarat Date: 07/03/2021 Chandrakant Chhaganlal Solanki Superintendent Ghatak-34 (Pal): Range 8: Division -4: Gujarat 4.4 The writ applicant had submitted its reply on 12.03.2021 thereby drawing attention of the respondent No.2 that the Notice does not spell out any reasons or basis, on the strength of which the Proper Officer had reason to believe that the registration was liable for cancellation. The writ applicant submitted that such action of suspension of registration of the writ applicant has completely halted the business activities and thereby prayed to revoke the suspension and withdraw the show cause notice. 4.5 However, the respondent authority without considering the aforesaid reply dated 12.03.2021, proceeded to pass the order for cancellation of registration on 17.03.2021. The said order reads as under: Reference Number : ZA2403211604060 Date: 17/03/2021 To ABANS COMMODITIES (I) PRIVATE LIMITED 439/2,1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 Penalty 0 0 0 0 Others 0 0 0 0 Total 0.0 0.0 0.0 0.0 Place : RANGE PALANPUR-I Date: 17/03/2021 Chandrakant Chhaganlal Solanki Superintendent Ghatak-34 (Pal) 4.6 Being aggrieved by the aforesaid action of the respondent authority cancelling the registration of the writ applicant company, an application for revocation of cancellation of registration came to be filed by the writ applicant on 05.04.2021. The writ applicant company submitted various documents more particularly, with regard to the new addresses as approved by the department in the original registration certificate. The writ applicant company drew attention of the respondent authority that in fact the request was made for personal hearing through virtual mode in view of the prevailing pandemic situation in the month of March, 2021. However, without accepting such request, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits. Renwat Singh Rathore Assistant Commissioner Ghatak 34(Pal) 4.8 The writ applicant submitted its reply on 12.04.2021. The respondent No.3 without appreciating the reply of the writ applicant company, proceeded to pass the order of rejection of application seeking revocation of cancellation of GSTN registration. The aforesaid order dated 27.04.2021 passed by the respondent No.3 reads thus: Form GST REG-05 [See Rule 9(4)] Reference Number: ZA240421185751O Date: 27/04/2021 To ABANS COMMODITIES (I) PRIVATE LIMITED 1,439/2, Sankdi Sheri, Near Khetarpal Ni Pole, Manek ] Chawk, Ahmedabad, Gujarat, 380001 GSTNIN (if available) : 24AAICA0476H1ZU Order for Rejection of Application for Revocation of Cancellation This has reference to your reply filed vide ARN AA240421019413U dated 06/04/2021. The reply has been examined and the same has not been found to be satisfactory for the following reasons: 1 Brief Facts: M/s. ABANS COMMODITIES (I) PRIVATE LIMITED having GSTI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs passed by the Assistant Commissioner and the Superintendent cancelling the registration is in complete violation of basic principles of natural justice. Upon hearing the learned counsel appearing for the respective parties as well as upon perusal of the record, the Additional Commissioner (Appeals) vide order dated 02.03.2022 proceeded to reject the appeal thereby confirming the order of rejection of application for revocation. Thus, the writ applicants have approached this Court seeking relief as prayed for. 5. We have heard Mr. Prakash Shah, the learned Senior Counsel assisted by Mr. Dhaval Shah, the learned advocate appearing for the writ applicants and Mr. Nikunt Raval, the learned Standing Counsel appearing for the respondent authorities. 6. The only question that falls for our consideration is whether the order of cancellation of registration and the order passed by the appellate authority in exercise of powers conferred under Section 107 of the CGST Act, 2017 are valid and sustainable in the eye of law? 7. Before we proceed to examine the merits of the case, the relevant details of the allied matters are reproduce in the tabular form as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Shah, the learned advocate appearing for the writ applicant has drawn attention of this Court to the contents of the show cause notice seeking cancellation of GSTN registration more particularly, the reasons assigned for proceeding for cancellation of registration. Further, the attention of this Court was drawn to the reasons given by the respondent authority while passing the order of cancellation of registration. Further, attention of this Court was also drawn to the contents of the show cause notice seeking revocation of cancellation as well as the order passed thereon. Mr. Shah, vehemently submitted that inspite of various decisions of this Court being passed in similar set of facts of the cases, the respondent authorities have acted in gross violations of provisions of the Act and Rules framed thereunder. He further submitted that at the very first stance of issuing the show cause notice, the registration has been suspended with retrospective date. The opportunity provided by the Superintendent to respond to the show cause notice seeking cancellation is an empty formality in as much as no proper specific details are furnished in the show cause notice. In fact, the show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this group of matters. He submitted that the respondent authorities were constrained to proceed for cancellation of registration having found the writ applicants being involved in obtaining such registration on the basis of fraud, wilful statement and suppression of facts. He further submitted that the respondent authorities have reason to believe that the writ applicant company has obtained such registration on the basis of fraud which is corroborated through the material derived during the search conducted by the Preventive Section of CGST, Gandhinagar Commissionerate. He further submitted that in fact these companies are not operative and therefore, there is clear violation of the provisions of Section 29(2)(e) of the CGST Act, 2017. He further submitted that the writ applicant company is engaged in passing the fake ITC by way of fraud. It is in this peculiar facts and circumstances, the adjudicating authority had valid reason to not to entertain the application for revocation and thus submitted that such orders passed in conformity of the procedure prescribed under Rule 43 of the CGST Rules, 2017 may not be interfered with. Lastly, he submitted that since the investigation is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has failed to address to the issue of various grounds raised by the writ applicants more particularly, as regards the opportunity of personal hearing and the instructions issued by the CBIT being not adhere to more particularly, during the period of pandemic. We could further notice that the core reason considered by the respondent appellate authority while rejecting the appeal is the aspect of fake Input Tax Credit availed by the writ applicants. It appears from the reasons and findings recorded by the appellate authority that reliance is placed on the report dated 22.12.2021 submitted by the Joint Commissioner, CGST, Gandhinagar, having informed that the said tax payers did not hold any ground for revocation of cancellation of registration. 11. At this stage, it would be appropriate to refer to the decision rendered by this Court in the case of Aggarwal Dyeing and Printing Works Vs. State of Gujarat and Ors., Special Civil Application No.18860 of 2021 and allied matters, decided on 24.02.2022. In the aforesaid batch of writ applications, the show cause notices seeking cancellation of registration of dealers so issued lack material particulars and this Court further found ..... X X X X Extracts X X X X X X X X Extracts X X X X
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