The Gujarat High Court quashed the order cancelling the registration of Goods and Services Tax (GST) passed without stating a detailed reason for the cancellation.
Sona Metals, the petitioner is registered under the Gujarat Goods & Service Tax, 2017 (“GST Act”). The respondent issued a show cause notice in Form GST REG-17/31 by way of uploading the same on the portal maintained by the department. The said show cause notice was issued under Section 29 of the GST Act read with Rule 22(1) of the GST Rules, 2017.
The petitioner argued that no document either in the form of notice or any other document has been received by the petitioner at the registered place of his business. It was further stated by the petitioner that notices dated 01.07.2022 simply speaks that “In case, Registration has been obtained using fraud, wilful misstatement or suppression of fact.”. Except for the aforesaid fact, the notice does not mention any other information.
Further stated that the registration of the petitioner was being cancelled under the show cause notice dated 30.06.2022, but in fact, the petitioner did not receive any such notice dated 30.06.2022 as stated in the impugned order.
Mr Nanavati appeared for the petitioner and submitted that the show cause notice dated 01.07.2022, a copy of which is placed on record of the compilation, is vague and does not refer to any particular fact much less point out to enable the notice to give its reply.
It was further submitted that even while passing the impugned order passed by respondent no.3, reasons are not assigned by the concerned respondent. On the other hand, Mr Trivedi contended that the concerned respondent issued notice dated 30.06.2022 to the petitioner, a copy of which is placed on record. It was submitted that in the said show cause notice, the respondent has provided necessary details to the petitioner so that the petitioner can give a reply to the said show cause notice.
It was found that the respondents have not provided in detail to the petitioner, how the petitioner has committed fraud, wilful misstatement or suppression of facts; while obtaining the registration, no documents were supplied to the petitioner along with the said show-cause notice.
While allowing the appeal, the coram comprising Justice Vipul M Pancholi and Justice Devan M Desai quashed the impugned show cause notice dated 20.07.2020and the impugned cancellation order dated 30.07.2020.
Further liberty was granted to the respondent authorities to issue a fresh notice with particulars of reasons incorporated with details and thereafter to provide a reasonable opportunity of hearing to the petitioner and to pass appropriate order by law. The concerned respondent is directed to restore the registration of the petitioner forthwith.
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