9911796707
TMI Blog2023 (6) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of facts, is not sufficient. Such terms need to be supported by reasons as to why, how and under what circumstances the registration was obtained by fraud/wilful misstatement/ suppression of facts. More so, such reasons ought to be supported by at least some fundamental supporting material, which, in the instant case is conspicuously missing. This Court has no manner of doubt that the impugned show cause notice dated 28.01.2022 (Annexure P/2) and the consequential order of cancellation of registration dated 11.02.2022 (Annexure P/4), rejection of application for revocation of cancellation of registration dated 30.03.2022 and the appellate order dated 13.06.2022 (Annexure P/9) are vitiated in law for being vague and having been issued in violation of principles of natural justice ( audi alteram partem ). The impugned order of cancellation of registration dated 11.02.2022 (Annexure P/4), the order of rejection of application for revocation of cancellation dated 30.03.2022 and appellate order dated 13.06.2022 (Annexure P/9) are quashed - petition allowed. - Writ Petition No. 21659 of 2022 And Writ Petition No. 22416 of 2022 - - - Dated:- 12-6-2023 - Hon'ble Shri Just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts/Revenue by referring to the return submits that on inspection of premises of the petitioner-firm carried out on 10.01.2022, the business activities of petitioner were found to be doubtful, on the basis of which the impugned show cause notice was issued. The return further reveals that another verification of activities of petitioner-firm was carried out by spot inspection during pendency of the appellate proceeding u/s. 107 of the SGST. The return, however, is not a para-wise return but a comprehensive one and, therefore, is blissfully silent as to the allegations of violation of principles of natural justice ( audi alteram partem ) and show cause notice being vague, except by making a bald statement that the principles of natural justice were followed. 8. A bare perusal of the impugned show cause notice dated 28.01.2022 (Annexure P/2) reveals that the reason given for the proposed cancellation of registration was as follows : In case, Registration has been obtained by means of fraud, wilful misstatement or suppression of facts . Apart from the aforesaid reason shown, no other reasons were assigned nor any supporting material was afforded to petitioner. As such, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by order dated 13.06.2022 (Annexure P/9) 9. After hearing learned counsel for rival parties and perusing the record, it is evident as day-light that the principle of natural justice ( audi alteram partem) has been given a go-bye by the Revenue at the very initial stage of issuance of show cause notice (Annexure P/2) for the reasons infra: 9.1 The power of cancelling registration stems from Section 29 where the Proper Officer is empowered to cancel registration when he finds that : (a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or (b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or (c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or (d) any person who has taken voluntary registration under subsection (3) of section 25 has not commenced business within six months from the date of registration; or (e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: 9.2 However, the aforesaid power of cancellation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner to file a reply and, therefore, reasonable opportunity of being heard was denied to the petitioner. By saying that the registration has been obtained by fraud/wilful misstatement/suppression of facts, is not sufficient. Such terms need to be supported by reasons as to why, how and under what circumstances the registration was obtained by fraud/wilful misstatement/ suppression of facts. More so, such reasons ought to be supported by at least some fundamental supporting material, which, in the instant case is conspicuously missing. 11.1 More so, the order of cancellation of registration is also bereft of any reason whatsoever and thus disables the petitioner-assessee from effectively availing the remedy of statutory appeal u/s. 107. 11.2 Further, the show cause notice for rejection of application for revocation of cancellation of registration (Annexure P/5) refers to an application dated 11.02.2022. The application dated 11.02.2022 was, in fact, a reply to the show cause notice for cancellation of registration (Annexure P/2) and, therefore, it appears that the Revenue has not even cared to ensure that true facts are reflected from the show cause notice (Annexure P/5) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification report had been uploaded on the designated portal. 20. Ms Anjali J. Manish, who appears on behalf of the petitioner, has emphatically submitted before us, that the verification report has not been uploaded on the designated portal. 21. Apart from anything else, there is, certainly, an infraction of the provisions of Rule 25 of the CGST, and that apart, as indicated above, the impugned order has gone beyond the frame of the SCN. 22. Accordingly, the prayer made in the writ petition is allowed. 23. The impugned order is set aside. 24. The respondents/revenue will restore the registration of the petitioner. 12.1 It is made clear though, that this order will not come in the way of the respondents/revenue issuing a fresh SCN or carrying on investigation against the petitioner, albeit as per law. 25. The writ petition is disposed of in the aforesaid terms. 13. In the conspectus of aforesaid discussion, this Court has no manner of doubt that the impugned show cause notice dated 28.01.2022 (Annexure P/2) and the consequential order of cancellation of registration dated 11.02.2022 (Annexure P/4), rejection of application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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