Gigamade Machineries Private Limited Vs State Of Gujarat (Gujarat High Court)
The Hon’ble Gujarat High Court in Gigamade Machineries Private Limited v. State of Gujarat [R/Special Civil Application No. 17599 of 2022 dated February 10, 2023] quashed and set aside the Show Cause Notice (“SCN”) and consequential order cancelling the GST Registration of the assessee, on the grounds of being violative of principles of natural justice, as the reasons for cancellation of GST Registration were not stated. Held that, the order is not only non-speaking but also cryptic in nature, which entails penal and pecuniary consequences and the Revenue Department ought to have referred to the contents of the SCN and have followed the principles of natural justice.
Facts:
Gigamade Machineries Private Limited (“the Petitioner”) is a firm to whom a SCN dated May 9, 2022 (“the Impugned SCN”) was issued by the Revenue Department (“the Respondent”) under Section 29 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) read with Rule 22(1) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) stating that, the Petitioner was found non-existing or non-functioning at the principal place of its business and proposing to cancel the GST Registration of the Petitioner. However, the Impugned SCN, did not disclose the basis for suo moto initiating process for cancellation of GST Registration.
The Petitioner filed a reply of the Impugned SCN stating that, it does not give any reasons for initiating process of cancellation of GST registration of the Petitioner and has been issued by a person who is not authorized in law to initiate process for cancellation of GST Registration. Subsequently, an order dated June 4, 2022 (“the Impugned Order”) was passed, cancelling the GST Registration of the Petitioner, wherein, the reasons for such cancellation were not mentioned.
Being aggrieved, this petition has been filed.
Issue:
Whether the Impugned Order passed for cancellation of GST Registration without specifying the reasons is maintainable?
Held:
The Hon’ble Gujarat High Court in R/Special Civil Application No. 17599 of 2022 held as under:
