Virendra Singh Thakur Vs State of Madhya Pradesh And Others (Madhya Pradesh High Court)
Madhya Pradesh High Court has set aside the cancellation of Goods and Services Tax (GST) registration for contractor Virendra Singh Thakur, citing a show cause notice that merely reproduced a legal provision without specifying the actual grounds for action. The court’s decision, delivered in the case of Virendra Singh Thakur Vs State of Madhya Pradesh And Others, also invalidated subsequent cancellation orders and a recovery notice, including the freezing of the petitioner’s bank account.
Mr. Thakur, who obtained GST registration on July 6, 2018, operates as a contractor for the Military Engineer Services (MES). The dispute arose from a show cause notice issued on July 15, 2022, which sought to cancel his registration under Section 29(2)(e) of the GST Act, 2017. This section pertains to registrations obtained by “fraud, wilful misstatement or suppression of facts.”
However, the High Court observed that the notice simply copied the text of the section verbatim. It failed to articulate whether Mr. Thakur’s case involved fraud, wilful misstatement, or suppression of facts, and provided no specific details or allegations supporting any of these claims. Furthermore, the show cause notice was deemed “completely bereft of any detail,” lacking essential information such as the name, designation, or office of the issuing authority, or the stipulated date and time for a personal hearing. The notice vaguely stated that failure to reply or appear would lead to an ex parte decision based on available records.
