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TMI Blog2024 (2) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... ground alone. Since the impugned orders have been passed without affording any opportunity of hearing to the petitioner, it is ordered that the impugned order dated 04.04.2022 itself be treated as a show cause notice and the petitioner may enter appearance before respondent No.1 and submit a detailed reply on or before 29.02.2024 - Petition allowed. - Honourable Sri Justice P. Sam Koshy, Honourable Sri Justice N. Tukaramji For the Petitioner : S Suri Babu For the Respondent : Dominic Fernandes senior standing counsel for CBIC ORDER: PER HON BLE SRI JUSTICE P. SAM KOSHY Heard Mr. Suri Babu, learned counsel for the petitioner and Ms. C. Rohini Smitha, learned Assistant Government Pleader for Commercial Taxes appearing for the respondents. Perused the entire record. 2. The challenge in the present writ petition is to the Order for Cancellation of Registration passed by respondent No.1, dated 04.04.2022, whereby, the GST registration of the petitioner stands cancelled with effect from 01.08.2021. 3. A plain reading of the impugned order dated 04.04.2022 would clearly reflect that there are no reasons mentioned which necessitated the issuance of the Order of Cancellation of Registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved that the measure of cancellation of GST must be exercised with circumspection and only in cases, where it is necessary . This in otherwise means that the intention of the Hon ble Delhi High Court by allowing the writ petition was that the authorities concern should take a more pragmatic approach so far as the case where GST registration is concerned and cancellation should not be restored in a mechanical manner or as a matter of routine. Similar decision has also been passed by Division Bench of this Court in W.P.No.36174 of 2022 vide order dated 20.09.2021, where the Division Bench had set-aside the order of the appellate authority and the matter had been remanded back for fresh consideration on its own merits. 8. Recently, there was yet another decision of the High Court of Bombay under similar circumstances in the case of Nirakar Ramchandra Pradhan v. Union of India and Others 2023 SCC OnLine Bom 2382 whereby a show cause notice issued for cancellation of registration and the subsequent cancellation of GST registration was subjected to challenge, wherein, the Division Bench of the High Court of Bombay in paragraph Nos.7, 8, 9 and 11 held as under: 7. At the outset, we may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee with a civil consequence. The petitioner s registration could not have been cancelled without any reason, as no reasons were neither set out in the show cause notice nor set out in the impugned order. The show cause notice and the impugned order suffered from an incurable defect which compels us to exercise the discretionary jurisdiction under Article 226 of the Constitution of India to quash and set aside the show cause notice as also the impugned order based on such illegal show cause notice. 11. According to the respondents, there was a modus operandi on the part of the petitioner to generate and claim fake ITC. If what is stated on behalf of the revenue is to be believed to be correct, in such event, the designated officer should have been more careful and could not have been so careless in issuing such defective show cause notice. The impugned action in issuing such show cause notice and passing of the impugned order thereon, has in fact proved counter-productive to the interest of revenue, if the department is correct in its case as put up in the reply affidavit for the first time. The concerned Commissionerate needs to take a serious view of such approach of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after scrutinising and approving by the respondents or any other competent authority. vii. The respondents may also impose such restrictions / limitation on petitioners as may be warranted to ensure that there is no undue passing of Input Tax Credit pending such exercise and to ensure that there is no violation or an attempt to do bill trading by taking advantage of this order. viii. On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith. viii. On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith. ix. The respondents shall take suitable steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web portal to allow these petitioners to file their returns and to pay the tax/penalty/fine. x. The above exercise shall be carried out by the respondents within a period of thirty (30) days from the date of receipt of a copy of this order. xi. No cost. xii. Consequently, connected Miscellaneous Petitions are closed. 5. The same has been consistently thereafter followed by this Court in various decisions, viz., a) M/s.Maaruthi Foundations Private Limited Vs De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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