Om Enterprises Vs Union of India (Bombay High Court)
In Om Enterprises vs Om Enterprises, the Bombay High Court considered the validity of cancellation of GST registration based on a show-cause notice and subsequent order passed by the respondent authority. The petitioner’s registration was suspended and a show-cause notice dated 12 October 2022 was issued alleging that the registration had been obtained by fraud, wilful misstatement, or suppression of facts. The notice directed the petitioner to submit a reply within seven working days and appear for a personal hearing, failing which the matter would be decided ex parte.
The petitioner submitted a reply contesting the proposed action. However, the respondent authority passed an order dated 28 October 2022 cancelling the registration. The cancellation order stated that a State GST office had visited the premises and found the petitioner not genuine, and further recorded that no response had been received from the taxpayer. The effective date of cancellation was mentioned as 12 October 2022. The order also included a table showing nil liability under tax, interest, penalty, and other heads.
The petitioner argued that there were serious inconsistencies between the allegations in the show-cause notice and the reasons recorded in the cancellation order. It was also submitted that the petitioner had discontinued business, which was not considered by the authority either while issuing the notice or passing the order.
