A division bench of the Gujarat High Court comprising Mr Justice J.B.Pardiwala and Ms Justice Nisha M. Thakore has held that show cause notice for cancellation for registration being vague can’t be valid and restored the registration under GST Act.
The writ-applicant is engaged in the business of trading bullion and agricultural commodities which was registered under the GGST Act with effect from 14.02.2018. A show-cause notice dated 11.03.2021 was served in the Form GST REG-17/31 called to show cause as to why registration under the Act should not be cancelled. It was observed that the respondent passed the final order cancelling the registration on 03.01.2022.
Mr Prakash Shah, assisted by Ms Dimple Gohil, was the advocate for the petitioner, and Mr Utkarsh Sharma appeared for the respondents. The petitioner contended that the show cause notice and the impugned order are vague and no valid grounds were mentioned. The respondent failed to state any reason for the cancellation of registration in the show-cause notice.
The bench viewed this case in light of the decision in the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat & 2 Ors. The bench quashed and set aside the impugned order cancelling the registration and restored the registration. Further, directed the department to do proceedings strictly by law and observations made by the Court in the case of Aggarwal Dyeing and Printing Works.
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