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TMI Blog2023 (11) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... f the petitioner, is cryptic in as much as though the show cause notice mentions that the registration has been obtained by means of fraud, willful mis-statement and suppression of facts, no details were furnished to the petitioner. Consequently, the order of cancellation also is bad. 4. Ms. Vaibhavi Parikh, learned counsel appearing for the petitioner, submitted that the Show Cause Notice as well as the impugned order are vague, inasmuch as, no reasons have been assigned for cancellation of registration. She would rely on the decision rendered by this Court in Special Civil Application No. 13230 of 2023, wherein this Court relying on the decision in the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat., reported in [2022] 137 taxmann.com 332 (Gujarat), has quashed and set aside the show cause notice and subsequent order passed therein. 5. Mr. Priyank Lodha, learned Senior Standing Counsel appearing for the respondent would submit that, admittedly, as a result of the registration having been found fraudulent and having been obtained by means of fraud, willful mis-statement and suppression of facts, was rightly cancelled. 5.1 Mr. Lodha, learned Senior Standing Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 reply to the show cause notice is found to be satisfactory, the Superintendent of Central Tax will drop the proceedings and pass an order in FORM GST REG-20. v. However, when the person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the Superintendent of Central Tax will issue an order in FORM GST REG-19, within a period of thirty days from the date of application or, as the case may be, the date of the reply to the show cause issued, cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24. v. Upon receipt of the information or clarification in FORM GST REG-24, the Proper Officer (Assistant or Deputy Commissioners of Central Tax) shall dispose of the application within a period of thirty days from the date of the receipt of such information or clarification from the applicant. In case the information or clarification provided is satisfactory, the Proper Officer (Assistant or Deputy Commissioners of Central Tax) shall dispose the application as per para (iii) above. In case it is not satisfactory the applicant- Cancellation of Registration in GST 16 GST FLYERS w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject 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 serve the wider principle of justice that justice must not only be done it must also appear to be done as well. d. Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. e. Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. f. Reasons have virtually become as indispensable a component of a decision making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. g. Reasons facilitate the process of judicial rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 petition is allowed solely on the ground of violation of principles of natural justice. The show cause notice as well as the order cancelling the registration are quashed and set aside with a liberty reserved to the respondent to issue a fresh notice with particulars of reasons incorporated with details, and thereafter, to provide reasonable opportunity of hearing to the writ petitioner and to pass appropriate speaking order on merits. It is needless to mention that it shall be open for the petitioner to respond to such notice by filing objections / reply with necessary documents, if relied upon. We clarify th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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