Nikita Agarwal Vs Assistant Commissioner of Revenue Commercial Taxes and State Tax (Calcutta High Court)
Calcutta High Court held that cancellation of GST registration with retrospective effect on the basis of vague show cause notice not furnishing any details is not in accordance with law. Accordingly, writ petition is allowed and orders cancelling registration set aside.
Facts- The appellant challenged the order passed by the Appellate Authority, namely, the Senior Joint Commissioner of WBGST, Kolkata North & 24 Parganas Circle dated 30th May, 2023 by which the appeal was dismissed affirming the order of cancellation of the appellant’s registration with retrospective effect. The appellant being aggrieved by such order has preferred this intra-Court appeal.
Conclusion- The show cause notice is absolutely vague and does not furnish any details nor does it say whether the allegation is that of fraud or willful misrepresentation or suppression of fact. Therefore, the entire edifice of the proceeding has to collapse because of the defective show cause notice at any stage or at a subsequent stage of the proceeding or appellate stage. This inherent defect, which is a jurisdictional error, cannot be rectified.
In the case of Ramesh Chander vs. Assistant Commissioner of Goods and Services tax, the Court held that registration cannot be cancelled with retrospective effect mechanically and it can be cancelled by a proper officer if he deems it fit and proper.
