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TMI Blog2025 (1) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... . KRISHNA ACHYUTH MENON PADMANATHAN K.V. FOR THE RESPONDENTS: P.T. DINESH SMT. JASMIN M M, GP JUDGMENT These writ petitions have been filed challenging the cancellation of registration granted to the petitioners under the provisions of the CGST / SGST Acts. While the petitioner in W.P(C)No.17867 of 2024 filed an appeal against the order of cancellation, which was rejected on the ground that it was belatedly filed, the petitioner in W.P(C)No.20537 of 2024 has challenged the order of cancellation directly in this Court. 2. The learned counsel appearing for the petitioners would submit that while several contentions have been taken in these writ petitions, the petitioners will be entitled to succeed on the basis of the law laid down by this Court in judgment dated 22.12.2022 in W.P(C)No.28783 of 2022, which was followed by this Court in almost identical circumstances in the judgment dated in the same day in W.P(C)No.29807 of 2022. It is submitted that in the facts of these cases also, the show cause notice prior to cancellation of registration was issued in Form REG-31, which is a form pertaining to suspension of registration under Rule 21A of the CGST Rules. It is submitted that canc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the reasons for cancellation had been clearly spelt out in the show cause notice. It is submitted that the purpose of a show cause notice is only to inform the noticee that certain action is being taken on account of reasons set out in the show cause notice. It is submitted that the show cause notices issued to the petitioners in these cases clearly indicate as to why steps were being taken to cancel their registration. It is submitted that there is substantial compliance with the requirements of the law and the fact that the Form mentioned was Form REG-31 cannot in any way vitiate the proceedings. Regarding the applicability of the scheme introduced by the notification dated 31.03.2023 referred to above, it is submitted that the provisions of an Amnesty Scheme like the one offered in the said notification can be availed only if the petitioners qualify under the terms of the scheme and there cannot be any dilution of the scheme by order of court. It is submitted that though the judgment of the Madras High Court in Active Pest Control (supra) appears to take the view that even orders passed after 31.12.2022 are entitled to the benefit of the scheme introduced by notification dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with any clarity, the reasons for proposing cancellation even the period for which there was alleged failure to file returns is not specified. I have in my judgment in W.P (C) No.28783/2022 held as follows:- 5. Having heard the learned Senior Counsel for the petitioner and the learned Senior Government Pleader and Adv. Alfred, learned counsel appearing for the 2nd respondent, I am of the view that the petitioner is entitled to succeed. The reasons which compel me to take such a view are the following: - (i) Ext.P5 show cause notice issued to the petitioner has been issued in Form GST REG-31. That form is to be issued in relation to proceedings for suspension of registration and is issued with reference to Rule 21A of the CGST/SGST Rules. It is clear that Form GST REG-31 is one relatable to proceedings for suspension of registration and cannot be treated as a show cause notice under Rule 21 of the CGST Rules, which requires the issuance of a notice in form GST REG-17. Ext.P5 does not even contain all the details contemplated by the form appended to the Rules. A reading of Ext.P5 suggests that the Officer issued the notice in form GST REG31 by omitting specific details from the for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:- 1. returns furnished by you under section 39 of the Central Goods and Services Tax Act, 2017 Observations Failure to furnish returns for a continuous period of six months You are hereby directed to furnish a reply to the notice within thirty days from the date of service of this notice. xx xx xx xx xx xx Apart from the fact that Ext.P.5 is issued in the wrong form, it is also bad for the complete absence of any detail. It is clearly vague and therefore the law laid down in the judgments of the Gujarat High Court in Aggarwal Dyeing and Printing (supra) and Sing Traders (supra) clearly apply. I am in respectful agreement with the views expressed in those decisions. The judgments of the Karnataka High Court and the Madhya Pradesh High Court relied on by the learned Senior Government Pleader appear to have been handed down in completely different fact situations. I am also not inclined to follow the law laid down by the Court in those judgments; (iii) The contention taken by the learned Government Pleader that since the Court deals with fiscal legislations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Madras High Court in MDR Enterprises (supra), I am of the view that the conditions prescribed by the Madras High Court while restoring the registration of the petitioner in that case should be imposed in this case also. 6. Accordingly these writ petitions are disposed of in the following manner:- Exts.P2 and P3 orders in W.P(C)No.17867 of 2024 and Ext.P2 order in W.P(C)No.20537 of 2024 will stand quashed subject to the same conditions set out in paragraph 5 of the judgment of the Madras High Court in MDR Enterprises (supra), which is extracted below for easy reference:- i. The petitioner is directed to file returns for the period prior to the cancellation of registration, together with tax dues along with interest thereon and the fee fixed for belated filing of returns within a period of forty five (45) days from the date of receipt of a copy of this order. ii. It is made clear that such payment of tax, interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of the petitioner. iii. If any Input Tax Credit has remained unutilized, it shall not be utilised until it is scruti ..... 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