Case Law Details
Jinesh Associates Vs Commissioner of Commercial Taxes (Karnataka High Court)
Proviso to Section 29(2) of Karnataka Goods and Services Tax Act specifically observes that there shall be no cancellation of GST registration without giving an opportunity of being heard. Accordingly, during the course of proceedings relating to cancellation of registration, there is a statutory mandate that the assessee should be given an opportunity of personal hearing. The authorities concerned in such proceedings is required to specifically state the time and date as regards personal hearing provided to the assessee. In light of the absence of such reference in the order at Annexure-B, the order at Annexure-B deserves to be set aside and the matter be remitted for fresh consideration before the Authority.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
Petitioner has sought for issuance of writ of certiorari to quash the show cause notice at Annexure-A and has also sought for issuance of writ of certiorari to quash the order for cancellation of Registration at Annexure-B and the endorsement at Annexure-E.
2. Petitioner submits that he was not personally heard in the proceedings leading to passing of the order at Annexure-B. It is contended that the show cause notice at Annexure-A does not fix any specific date for availing the opportunity of personal hearing and submits that as per Karnataka Goods and Services Tax Act and the Central Goods and Services Act, the show notice must specify the time and date for availing the opportunity of personal hearing.
3. It is noticed that Annexure-A does not specify any specific date for availing the opportunity of personal hearing and the order at Annexure-B merely records that the reply and submission have been examined at the time of hearing. There is no details forthcoming as to whether petitioner was afforded an opportunity of personal hearing in terms of the proviso to Section 29(2) of the Karnataka Goods and Services Tax Act.
4. The proviso to Section 29(2) of the Karnataka Goods and Services Tax Act specifically observes that there shall be no cancellation of registration without giving an opportunity of being heard. Accordingly, during the course of proceedings relating to cancellation of registration, there is a statutory mandate that the assessee should be given an opportunity of personal hearing. The authorities concerned in such proceedings is required to specifically state the time and date as regards personal hearing provided to the assessee. In light of the absence of such reference in the order at Annexure-B, the order at Annexure-B deserves to be set aside and the matter be remitted for fresh consideration before the Authority.
5. Accordingly, the order at Annexure-B is set aside. The matter is remitted for fresh consideration before the Authority to be disposed off in terms of the observations made above and the proceedings are directed to be commenced from the stage after issuance of notice dated 06.02.2019. Consequently, the endorsement at Annexure-E is also set aside. All contentions of the petitioner as regards Annexure-A are kept open to be made out to the respondent –
6. In light of the above, writ petition is disposed
