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TMI Blog2022 (12) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... cause notice within the time given, despite that the order of cancellation of registration dated 8.3.2022, refers to the reply of the petitioner dated 6.3.2022, which in our opinion shows non-application of mind by the authority. The authority has self-contradicted themselves by initially giving reference to reply dated 6.3.2022 and immediately in the next line stating that no reply to the show cause notice has been submitted. Moreover, in the order the date of cancellation of registration is made effective from 1.8.2021 as opposed to 23.2.2022 mentioned in the show cause notice. Therefore, we are of the opinion that the order dated 8.3.2022 is also issued without due application of mind. In respect of order dated 7.9.2022, admittedly the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties, this petition is taken up for final hearing. 2. This petition under Article 226 of the Constitution of India has been filed seeking directions for quashing and setting aside of (i) show cause notice dated 23.2.2022, (ii) an order dated 8.3.2022 cancelling the registration of the petitioner and (iii) an appeal order dated 7.9.2022, rejecting the appeal of the petitioner on the ground of limitation. 3. Facts in brief are, 3.1. The petitioner is a manufacturing unit of M.S. Billets. It has been purchasing sponge, iron and steel scraps from various firms and companies located in the State of Gujarat and after manufacturing M.S. Billets, selling the said goods to various buyers. The business activity on steel products undertaken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by respondent No. 3 proposing to cancel the registration. In the notice, it was stated that the registration of the petitioner stands suspended w.e.f. 23.2.2022. In the said show cause notice, the petitioner was provided an opportunity of filing reply within seven working days from the date of service of notice. The notice specifically stated that in case no reply is filed or no person appears for personal hearing on the appointed date, the case would be decided ex-parte. Admittedly, the petitioner neither filed reply nor attended a hearing as the entire staff of the company had left the job and the Directors of the Company were busy resolving the problem of revival of its business. In consequences of the show-cause notice dated 23.2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 8.3.2022, he submitted despite no reply filed to the show cause notice, it refers to a purported reply dated 6.3.2022. In support of his submission, he relied upon the decision of this Court in the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat reported in [2022] 137 taxmann.com 332 and submitted that as observed by this Court, not adhering to the procedure prescribed under the Act would amount to breach of statutory provisions and therefore, the orders are bad in law. 5.1. In relation to the order of the appellate authority dated 7.9.2022, learned advocate relied upon the decision of Madras High Court dated 25.4.2022, in the case of Maaruthi Foundations Pvt.Ltd in Writ Petition No.9905 of 2022 W.M.P.Nos. 9619 &9621 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the petitioner has challenged three actions/ orders passed by the respondent namely: (i) show cause notice dated 23.2.2022, (ii) an order dated 8.3.2022 cancelling the registration of the petitioner and (iii) an appeal order dated 7.9.2022, rejecting the appeal of the petitioner on the ground of limitation. In respect of show cause notice dated 23.2.2022, we notice that the reason mentioned thereunder is non-filing of returns for a continuous period of six months. Though the notice states that the case will be decided ex-parte in case no reply is filed within the stipulated date or failure to appear for personal hearing on the appointed date, evidently, there is no appointed date mentioned for securing personal hearing for the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause of the reasons mentioned above that the petitioner could not file its return from August 2021 to January 2022. Therefore, barring the non-filing of return for six consecutive months, there was no outstanding tax liability of the petitioner. 8.4. In respect of order dated 7.9.2022, admittedly the appeal could not be heard on merits as the same was rejected on the ground of limitation. Therefore, though we are conscious that opportunity inspite of being provided in the show cause notice dated 23.2.2022 was not availed of by the petitioner, at no stage can it be said that the petitioner was heard to explain the delay in filing returns. The reason for not being able to reply to the show cause notice in time has been sufficiently explained ..... X X X X Extracts X X X X X X X X Extracts X X X X
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