Calcutta HC suspends Order for Cancellation of GST Registration as Allegations in SCN are Vague [Read Order]

The Calcutta High Court recently suspended the part of order passed by the GST department for the cancellation of GST registration as the Court found the allegations in the show-cause notice were vague.

The petitioner, Galaxy Mechanical Engineering Equipments Private Limited &Anr, challenged the impugned show-cause notice for cancellation of registration of the petitioner and suspending the registration of the petitioner.

The petitioner contended that the impugned order of cancellation of registration is a nonspeaking order and also on the ground of non-application of mind by recording in the said impugned order of cancellation that the respondent has considered the reply in response to the impugned show-cause notice while in fact, no such reply was given.

Allowing the above contentions, Justice Md. Nizamuddin observed that on perusal of the aforesaid impugned order of cancellation of the registration, the allegation of the petitioner is correct since no reason has been given in the impugned order of cancellation and is non-speaking order and is not sustainable in law and accordingly the impugned order of cancellation of registration of the petitioner is set aside and all legal consequences will follow.

“So far as part of the impugned show-cause notice for cancellation of registration, where registration of the petitioner has been suspended this part of the impugned order will remain suspended since the allegation in the impugned show-cause notice is very vague and one line allegation without any basis and for the ends of justice a person against whom a show-cause notice has been issued, he should be at least provided in brief the basis of such allegation so that the person can meet the allegations in show-cause notice. Impugned order of suspension will remain suspended till the reply to the impugned show cause notice is given and hearing is given on the same and is disposed of by passing a reasoned and speaking order in accordance with law,” the Court said.

Galaxy Mechanical Engineering Equipments Pvt Ltd & Anr. VS Assistant Commissioner, Bally

CITATION: 2022 TAXSCAN (HC) 114

To Read the full text of the Order CLICK HERE

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