Tex Fab India Vs Union of India & Ors. (Bombay High Court)
Cancellation of GST Registration Without Reasons and Lapse of Provisional Attachment under Section 83(2)
The petitioner is a trader. During investigation; the GST authorities alleged that it had availed Input Tax credit (ITC) without receipt of goods. Accordingly; its bank account came to be attached under section 83 of the Finance Act. Its GST registration also came to be cancelled under section 29 of the GST act on the ground that the registration was obtained based on alleged fraud. Hence, petition came to be filed.
The Hon’ble Bombay High Court set aside the orders and allowed the petition. It held: (i) GST registration was cancelled without assigning any reasons and issuing unreasoned notice; (ii) follows its earlier judgments in Makesburry India and G B Traders; (iii) in so far as attachment is concerned; it lapses as per provision of section 83(2) of the Act as one year had lapsed; directs Bank to unfreeze the account; (iv) grants liberty to revenue to issue fresh show cause notice within 15 days if any reason survives.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Rule is made returnable forthwith. By consent of the parties, heard finally.
