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Case Law Details

Case Name : Mayel Steels Pvt Ltd Vs Union of India (Bombay High Court)
Appeal Number : WP (L) No. 36594 of 2022
Date of Judgement/Order : 19/06/2023
Related Assessment Year :
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Mayel Steels Pvt Ltd Vs Union of India (Bombay High Court)

In the case of Mayel Steels Pvt Ltd vs Union of India, the Bombay High Court delivered a judgment quashing the cancellation of the petitioner’s registration. The court found that the respondent had acted arbitrarily and emphasized the importance of serving proper notice to dealers.

Analysis: The court observed that the respondent, Superintendent of CGST & C EX, had acted in an arbitrary manner by issuing a show cause notice to the petitioner with a remarkably short notice period and a peculiar time for appearance. The court questioned the validity of such a notice and emphasized the principles of natural justice, stating that the petitioner should have been granted an opportunity to be heard before adverse consequences were imposed.

Furthermore, the court noted that despite the filing of the present petition, the respondent proceeded to cancel the petitioner’s registration, even including issues not mentioned in the show cause notice. This reaffirmed the court’s view that the respondent had acted arbitrarily and in breach of the principles of natural justice.

As a result, the court set aside both the show cause notice and the order cancelling the petitioner’s registration. The court also directed that if a fresh show cause notice is to be issued, the petitioner should be given an opportunity to reply in accordance with the law. Additionally, the court emphasized the need for effective communication of show cause notices, suggesting that they should be served not only through online portals but also via email and hand delivery to ensure dealers can effectively respond.

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