Case Law Details
Himat Trading Co. Vs Union of India & Anr. (Gujarat High Court)
In the case of Himat Trading Co. vs Union of India & Anr., the Gujarat High Court addressed the petition filed by Himat Trading Co. challenging the GST registration cancellation order issued on April 5, 2021. The petitioner argued that both the show cause notice and cancellation order, issued on March 22, 2021, were vague and lacked detailed reasons. Despite attempts to revoke the cancellation, no decision was made, prompting the company to approach the court. Upon review, the court found the cancellation notice to be cryptic and lacking clarity, ruling in favor of the petitioner by setting aside the cancellation. However, the respondents retain the right to issue a new show cause notice following legal procedures.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
[1] Heard learned advocate Mr. Apurva N. Mehta for the petitioner and learned advocate Ms. Hetvi Sancheti for the respondents.
[2] By this petition under Article 226 of the Constitution of India, the petitioner has challenged the order dated 5th April 2021 passed by the respondent No.2 cancelling the GST registration of the petitioner.
[3] Learned advocate Mr. Mehta submitted that the respondent has issued show cause notice dated 22nd March 2021 for cancellation of registration by mentioning only one line “in case, Registration has been obtained by means of fraud, wilful misstatement or suppression of facts”. It was submitted that similarly, the order dated 22nd March 2021 on the same date was passed cancelling the registration and as per the show cause notice, the petitioner was directed to appear and file reply on 31st March 2021. It was submitted that the petitioner thereafter preferred revocation application for cancellation of registration on 29th September 2021 and the show cause notice was issued on the same date by the respondent for rejection of application for revocation of cancellation of registration. Learned advocate Mr. Mehta submitted that till date, no order is passed on the application for revocation of cancellation of registration and therefore, the petitioner has approached this Court by the present petition.
[4] On perusal of the show cause notice dated 22nd March 2021 and the order of cancellation of registration on the same date, it is clear that both are cryptic without giving any reason or specifying any reason for cancellation of registration. The case of the petitioner is squarely covered by the decision of this Court in the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat and two others [R/Special Civil Application No.18860 of 201 and allied matters decided on 24th February 2022].
[5] In view of the above, the show cause notice and the impugned order dated 5th April 2021 are hereby quashed and set aside. This petition stands allowed to the aforesaid extent. No order as to costs. It is however made clear that the respondents are not precluded from initiating the proceedings after serving the detailed show cause notice if required in accordance with law.
Author Bio
