The Tripura High Court ordered the Authority to unblock GST account on its official portal.
The petitioner is a proprietor, engaged in purchase and sale of consumables and other taxable goods for which purpose the petitioner enjoys registration under the State as well as Central GST Acts. On 16th December 2020, the Superintendent of Taxes issued a show cause notice to the petitioner for cancellation of such registration.
The petitioner did not reply to the said show cause notice within 7 days permitted however replied on or around 1st January, 2021. Thereafter, the Superintendent of Taxes has so far not passed any order in connection with the said show-cause notice.
The petitioner finds that his GST account is blocked on the GST portal.
The senior counsel Mr. P K Dhar for the Government submitted that the petitioner has substantial dues of the department which despite notices he has not paid.
The division bench is headed by Chief Justice Akil Kureshi Justices S.G. Chattopadhyay said that Whatever be the tax demand of the department against the petitioner, the action under challenge cannot survive the test of law. The impugned notice has been issued only for cancellation of registration, that too without citing any particular reason. The reason stated is picked up from the statute itself namely, non-compliance of any specified provisions of GST Act or the Rules made thereunder. Without specifying which provisions of the Act or the Rules and in what manner the petitioner has approached, granting hearing to the petitioner would be an empty formality.
“Under the circumstances, impugned show cause notice dated 16th December 2020 is quashed on the ground of being vague and imprecise. Further, the respondents are directed to unblock the petitioner’s GST account on its official portal. This is without prejudice to the steps that the department makes to recover its dues in accordance with law or to breach any of the requirements under the law as the rules and regulations permit,” the court said.
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