Case Law Details
Hindustan Paper Machinery Industries Vs Commissioner CGST (Allahabad High Court)
Introduction: The Allahabad High Court recently addressed a crucial GST case involving Hindustan Paper Machinery Industries and the Commissioner CGST. The petitioner sought relief against the cancellation of their registration under the Central Goods and Services Tax Act, 2017. The court’s stance on the adequacy of alternative remedies and due process is of paramount importance.
Detailed Analysis: The legal proceedings initiated with the issuance of a show-cause notice on 23/03/2023, alleging violations related to the issuance of invoices without the actual supply of goods or services. The petitioner responded on 28/03/2023, citing an ongoing investigation by the DGGI, Delhi, and the matter being sub judice in the Hon’ble High Court through writ petition no. W.P.(C) 3752/2023.
Despite the reply, the Superintendent, CGST Range14, Division IIIrd, Ghaziabad, passed an order on 09/08/2023, cancelling the petitioner’s registration. The order lacked a detailed rationale, making it contentious. The court highlighted the inadequacy of the non-speaking show-cause notice, emphasizing that no specific facts or details of the alleged violations were presented.
Recognizing the gravity of registration cancellation for a business, the court found the order lacking in legal standing due to its absence of reasoning. It asserted that relegating the petitioner to an alternative remedy, given the undisputed facts, would serve no real purpose. The court overruled objections to the maintainability of the writ petition, underlining the need for due process and adherence to the rule of law.
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