Shaarc Projects Ltd. And Anr. Vs Union of India And 4 Ors. (Gauhati High Court)
The petitioners filed a writ petition challenging the show cause notice dated 08.03.2022 issued for cancellation of their GST registration. The notice required the petitioners to explain why their registration should not be cancelled on account of non-compliance with specified provisions of the GST Act or the Rules made thereunder.
When the writ petition was instituted, a Coordinate Bench of the Gauhati High Court had issued notice and continued an earlier interim order directing that no coercive action be taken against the petitioners.
The Court heard the learned Senior Counsel appearing for respondent Nos. 3 to 5 and examined the impugned show cause notice. Upon perusal, the Court found that the notice was vague and did not disclose the material particulars identifying the specific provisions of the Central Goods and Services Tax Act, 2017 or the Rules framed thereunder that were allegedly violated by the petitioners.
Taking note of the absence of material particulars and the vagueness of the notice, the Court held that the show cause notice dated 08.03.2022 could not be sustained in law. Consequently, the Court set aside and quashed the impugned notice and disposed of the writ petition.
Before concluding, the Court clarified that quashing the impugned show cause notice would not preclude the respondent authorities from taking appropriate steps in accordance with the provisions of the Central Goods and Services Tax Act, 2017 and the Rules framed thereunder if any infraction of the Act or the Rules is found.
FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT
1. None appears on behalf of the petitioners on call.
2. Mr. S.C. Keyal, the learned Senior Counsel as well as the Standing Counsel for the CGST assisted by Mr. K. Jain, the learned counsel appears on behalf of the respondent Nos. 3 to 5.
3. The present writ petition has been filed by the petitioners assailing the show cause notice dated 08.03.2022, whereby the petitioners were show caused as to why the petitioners’ registration should not be cancelled on account of noncompliance of specified provisions in the GST Act or the Rules made thereunder.
4. This Court duly takes note of that when the writ petition was filed before this Court, the learned Coordinate Bench of this Court, while issuing notice continued the interim order passed earlier that no coercive action should be taken against the petitioners.
5. This Court has duly heard the learned Senior Counsel appearing on behalf of the respondents and has also perused the show cause notice dated 08.03.2022 issued for cancellation of the registration.
6. A perusal of the said show cause notice reveals that the same is vague and does not contain the material particulars as to what are the specific provisions of the Central Goods and Services Tax Act, 2017 or the Rules framed thereunder which have not been complied with.
7. Taking into account that the said show cause notice dated 08.03.2022 is vague and lacks material particulars, the said cannot be sustained in law, for which, the same is set aside and quashed.
8. Accordingly, the writ petition stands disposed of.
9. Before parting with the record, this Court, however, observes that the quashing of the impugned show cause notice dated 08.03.2022, shall not preclude the respondent authorities to take steps as per the provisions of the Central Goods and Services Tax Act, 2017 and the Rules framed therein under, if there is any infraction to the provisions of the said Act and the Rules framed thereunder.
