Case Law Details
Mahendra Janubhai Zala Vs Office of Deputy Commissioner, State Tax (Gujarat High Court)
The Hon’ble Gujarat High Court in Mahendra Junabhai Zala v. Office of Deputy Commissioner, State Tax [R/Special Civil Application No. 13597 of 2022, dated November 25, 2022] has held that Show Cause Notice (“SCN”) and order for cancellation of Goods and Service Tax (“GST”) Registration is not sustainable on the grounds that the order was passed without any personal hearing and thus, cryptic in nature. Further directed the Revenue Department to restore the GST registration of the assessee.
Facts:
Mahendra Junabhai Zala (“the Petitioner”) is a sole proprietor and a small-scale contractor in construction business. The Petitioner has challenged the action of the Office of the Deputy Commissioner, State Tax (“the Respondent”) essentially on the ground of the violation of principle of natural justice. The Respondent issued an SCN on May 15, 2018 following the order cancelling the GST Registration of the Petitioner on August 13, 2018 (“the Impugned Order”). The request of the Petitioner for restoration of cancellation of the registration was rejected on November 26, 2021 on the ground that there was a huge delay of four years in challenging the SCN and the Impugned Order and the time period of appeal was also over.
The Petitioner contended that, being from a rural background is unfamiliar with technology, the Petitioner had hired a local accountant who failed to file the GST returns. Moreover, it is only after the passing away of the accountant on May 06, 2021, the Petitioner realised that the GST returns were not filed. The Petitioner was unaware of the SCN updated on a GST portal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
