Afzal Husain Saiyed Vs PCIT (Bombay High Court)
In Afzal Husain Saiyed Vs PCIT, the Bombay High Court examined the validity of cancellation of GST registration and attachment of bank accounts under the Central Goods and Services Tax Act, 2017. The petitioner, engaged in metal scrap trading and registered under the CGST Act, challenged a show cause notice dated 18 September 2023, a cancellation order dated 5 October 2023, and provisional attachment of bank accounts dated 12 September 2023.
The facts indicate that summons were issued on 5 September 2023 alleging wrongful availment of Input Tax Credit through fake invoices. The petitioner was arrested on 8 September 2023 and remained in judicial custody. Subsequently, authorities issued a show cause notice proposing cancellation of GST registration and attached the petitioner’s bank accounts. The petitioner contended that the show cause notice and cancellation order were invalid as they did not contain any reasons, making them arbitrary and violative of principles of natural justice. It was also argued that due to judicial custody, the petitioner could not respond, resulting in an ex-parte order. Regarding bank attachment, the petitioner submitted that no prior intimation was given and that the action did not comply with statutory requirements under Section 83 of the CGST Act.
