9911796707
TMI Blog2024 (8) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... or the reason on the strength of which, conclusion of fraud or misstatement or suppression of facts was drawn is totally absent in the show cause notice. The show cause notice, should spell out the factual backdrop of breach, on the strength of which the department has rejected and concluded that Section 29 (2) (e) of the Act, can be invoked. If minimum factual backdrop and nature of breach is not mentioned with accuracy and precision, the petitioner was not in a position to file reply. Needless to mention that the show cause notice dated 09.11.2023 became the foundation for issuance of orders dated 29.11.2023 and 23.02.2024, since the foundation cannot sustain judicial scrutiny, the entire edifice of orders passed thereupon are liable to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase are that the petitioner was served with a show cause notice dated 09.11.2023 for cancellation of registration, in the said notice itself it was mentioned that the registration of the petitioner stands suspended with effect from 09.11.2023. The petitioner was directed to reply and appear in person for hearing at the appointed date. The said show cause notice was followed by the impugned order dated 29.11.2023, which cancelled the registration of the petitioner. Aggrieved, the petitioner preferred an application for revocation of cancellation of registration on 02.12.2023. The said application was rejected by order dated 23.02.2024. 4. Learned counsel for the petitioner submits that the show cause notice dated 09.11.2023 shows that the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the strength of which, conclusion of fraud or misstatement or suppression of facts was drawn is totally absent in the show cause notice. The show cause notice, in our considered opinion, should spell out the factual backdrop of breach, on the strength of which the department has rejected and concluded that Section 29 (2) (e) of the Act, can be invoked. If minimum factual backdrop and nature of breach is not mentioned with accuracy and precision, the petitioner was not in a position to file reply. 10. The Apex Court expressed the need of issuance of such notice in Canara Bank vs. Debasis Das (2003) 4 SCC 557, at para No. 15, which reads as under: 15. ... Notice is the first limb of this principle. It must be precise and unambiguous. It s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting proceedings against the petitioners therein. 13. Needless to mention that the show cause notice dated 09.11.2023 became the foundation for issuance of orders dated 29.11.2023 and 23.02.2024, since the foundation cannot sustain judicial scrutiny, the entire edifice of orders passed thereupon are liable to be jettisoned. 14. We do accordingly and set aside the show cause notice dated 09.11.2023, order dated 29.11.2023 and order dated 23.02.2024, since interference by us is for not following the principles of natural justice, the respondents can proceed against the petitioner from appropriate stage. However, since the impact of setting aside the show cause notice dated 09.11.2023 automatically restores the registration of the petitioner, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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