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.
