GST registration cancellation order cannot be passed without issuing SCN

Syed Jafar Abbas Vs Commercial Tax Officer (High Court Gujarat)

The subject matter of challenge in the present writ application is to the impugned order dated 04.06.2020 cancelling the GST registration of the writ applicant w.e.f. 24.10.2018. We need not delve much into the facts of this litigation as the order impugned deserves to be quashed and set aside outright on two grounds (i) no show­cause notice in form GST REG­17 was issued and (ii) the impugned order cancelling the registration is bereft of any details.The impugned order is at page 25, Annexure­D to the writ application. We take notice of the fact that the writ applicant had no opportunity to put forward his case before the impugned order of cancellation came to be passed.

Mr.Kathiriya, the learned AGP very fairly submitted that the order impugned dated 04.06.2020 is not only bereft of any material particulars, but the same has been passed without issuing the show­cause notice in Form GST REG­17.

In the result, this writ application succeeds and is hereby allowed. The impugned order dated 04.06.2020 is quashed and set aside.

The matter is remitted to the Commercial Tax Officer, Ghatak­7, Ahmedabad, with a direction that, if he intends to pass a fresh order of cancellation of registration, then he shall first issue show­cause notice in Form GST REG­17 giving an opportunity of hearing to the writ applicant and thereafter, pass an appropriate order. This exercise be completed at the earliest, preferably within a period of four weeks from the date of presentation of this order before the authority. We may clarify that, if the respondent is of the firm view that the registration deserves to be cancelled, only then, he may intend fresh exercise of issuing fresh show­cause notice and passing of the fresh order, otherwise, the original registration may restore in accordance with law.

FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT

1.By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs:

“A. A writ in the nature of certiorari and or any other appropriate writs, order or direction be issued for quashing and setting aside the impugned order dated 04 .06.2020 of cancellation of registration of the petitioner.

B. This Hon’ble Court may be pleased to issue a writ or Mandamus or any other appropriate writ directing to recall the impugned order of cancellation of the registration of the petitioner with effect from 24 .10.2018 and to restore the registration of the petitioner with effect from 24 .10.2018.

C. During the pendency and/or final disposal of the present petition, this Hon’ble Court may be pleased to stay the operation, implementation of the impugned order dated 04.06.2020 if cancellation of the registration certificate of the petitioner being registration certificate Number 24BCSPA7479Q1ZO, issued on 30.11.2018.

D. During the pendency and /or final of the present petition, this Hon’ble Court may be pleased to issue a writ of mandamus directing the respondents to allow the petitioner to do business under the registration Certificate Number 24BCSPA7479Q1ZO, issued on 30.11.2018.

E. An exparte ad­interim relief in terms of para 8 (C) and (D) may kindly be granted.”

2.We have heard Ms.Reeta Mukherjee, the learned counsel assisted by Mr. Parth Shah, the learned counsel appearing for the writ applicant and Mr. Trupesh Kathiriya, the learned AGP appearing for the State Respondents.

3.The subject matter of challenge in the present writ application is to the impugned order dated 04.06.2020 cancelling the GST registration of the writ applicant w.e.f. 24.10.2018. We need not delve much into the facts of this litigation as the order impugned deserves to be quashed and set aside outright on two grounds (i) no show­cause notice in form GST REG­17 was issued and (ii) the impugned order cancelling the registration is bereft of any details.The impugned order is at page 25, Annexure­D to the writ application. We take notice of the fact that the writ applicant had no opportunity to put forward his case before the impugned order of cancellation came to be passed.

4. Mr.Kathiriya, the learned AGP very fairly submitted that the order impugned dated 04.06.2020 is not only bereft of any material particulars, but the same has been passed without issuing the show­cause notice in Form GST REG­17.

5.In the result, this writ application succeeds and is hereby allowed. The impugned order dated 04.06.2020 is quashed and set aside.The matter is remitted to the Commercial Tax Officer, Ghatak­7, Ahmedabad, with a direction that, if he intends to pass a fresh order of cancellation of registration, then he shall first issue show­cause notice in Form GST REG­17 giving an opportunity of hearing to the writ applicant and thereafter, pass an appropriate order. This exercise be completed at the earliest, preferably within a period of four weeks from the date of presentation of this order before the authority. We may clarify that, if the respondent is of the firm view that the registration deserves to be cancelled, only then, he may intend fresh exercise of issuing fresh show­cause notice and passing of the fresh order, otherwise, the original registration may restore in accordance with law.

6.The writ application is accordingly disposed of.