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TMI Blog2023 (9) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... HARGAV D. KARIA MS VAIBHAVI K PARIKH(3238) FOR THE PETITIONER(S) NO. 1 DELETED FOR THE RESPONDENT(S) NO. 2 PRIYANK P LODHA, SENIOR STANDING COUNSEL FOR THE RESPONDENT(S) NO. 3 SERVED BY RPAD (N) FOR THE RESPONDENT(S) NO. 1 JUDGMENT ( PER : HONOURABLE MR. JUSTICE BIREN VAISHNAV ) 1 Rule returnable forthwith. Mr.Priyank Lodha, learned Senior Standing Counsel waives service of notice of rule on behalf of the respondent. With consent of the learned advocates appearing for the respective parties, the matter is taken up for final hearing today. 2 By way of this petition under Article 226 of the Constitution of India, the petitioner has prayed to quash and set aside the show cause notice dated 20.01.2023 and the impugned order dated 22.06.2023. 3 Facts in brief are as under: 3.1 The petitioner is a proprietor of M/s. H.K. Tradelink, engaged in the business of trading in waste and scrap, registered under the provisions of the CGST Act having its registration GSTIN No. 24IBPJ2381A2ZX with effect from 12.03.2023. The petitioner has been regularly filing the GST returns. 3.2 It is the case of the petitioner that since the date of registration of the proprietary concern, there was not a single ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aws (Central excise, Service tax, VAT etc.), but who now is not liable to be registered under the GST Act has to submit an application electronically by 31st December 2017, in FORM GST REG-29 at the common portal for the cancellation of registration granted to him. The Superintendent of Central Tax Cancellation of Registration in GST 12 GST FLYERS shall, after conducting such enquiry as deemed fit, cancel the said registration. ii. The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under Central Goods and Services Tax Act. iii. In the event, the Superintendent of Central Tax has reasons to believe that the registration of a person is liable to be cancelled, a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled; will be issued. iv. The reply to the show cause notice issued has to be furnished by the registered person in FORM REG 18 within a period of seven working days. iv. In case the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through a Facilitation Centre notified by the Commissioner: ii. However, if the registration has been cancelled for failure to furnish returns, application for revocation shall be filed, only after such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns. iii. On examination of the application if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, then he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant. iv. However, if on examination of the application for revocation, if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is not satisfied then he will issue a notice in FORM GST REG 23 requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to furnish the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in A.K. Kraipak v. Union of India, (1970) 1 SCR 45. The Hon'ble Supreme Court vide judgments in the cases of Ravi Yashwant Bhoir v. District Collector Raigad, (2012) 4 SCC 407, Sant Lal Gupta v. Modern Cooperative Grouop Housing Society Limited, (2010) 13 SCC 336; Kranti Associates Private Limited v. Masood Ahmed Khan, (2010) 9 SCC 496; Abdul Ghaffar v. State of Bihar, (2008) 3 SCC 258, has expanded the horizon of natural justice and reasons have been treated part of the natural justice. It has gone to the extent in holding that reasons are heart and soul of the order. The absence of reasons renders an order indefensible/unsustainable particularly when it is subject to appeal/revision. It is to be noted that in the case of Kranti Associates v. Masood Ahmed Khan, (2010) 9 SCC 496, the Hon'ble Supreme Court after considering various judgments formulated certain principles which are set out below: a. In India the judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. b. A quasi-judicial authority must record reasons in support of its conclusions. c. Insistence on recording of reasons is meant to se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 EHRR 553 at 562 para 29 and Anya v. University of Oxford, 2001 EWCA Civ 405, wherein the Court referred to Article 6 of European Convention of Human Rights which requires, adequate and intelligent reasons must be given for judicial decision. o. In all common law jurisdictions judgments play a vital role in setting up precedents for the future. Therefore, for development of law, requirement of giving reasons for the decision is of the essence and is virtually a part of Due Process . Thus, the position of law that emerges from the decisions mentioned above, is that 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 reappreciation of evidence adduced and documents produced in the case. 7 The Court had held that by issuing a cryptic show cause notice, the authorities had violated the principles of natural justice. From the impugned order as well as the show cause notice, the reasons for cancellation are not decipherable therefrom. 8 On the aforesaid grounds, the show cause notice and the impugned order are quashed and set aside. The p ..... 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