Case Law Details
Umiya Industries Vs Superintendent of Goods And Services Tax (Gujarat High Court)
Conclusion: While issuing a cryptic show cause notice, the authorities had violated the principles of natural justice. As from the impugned order as well as the show cause notice, the reasons for cancellation of GST registration were not decipherable therefrom, therefore, the show cause notice and the impugned order were quashed and set aside.
Held: Assessee submitted that show cause notice issued to assessee seeking to cancel the registration of assessee was cryptic in as much as though the show cause notice mentioned that the registration had been obtained by means of fraud, willful mis-statement and suppression of facts, no details were furnished to assessee. Consequently, the order of cancellation also was bad. Respondent held that panchnama was carried out on 02.06.2022 and it was observed that the gate was closed and no business activity was carried out by assessee since long. Deputy Commissioner (Anti Evasion), CGST, Rajkot directed the Assistant Commissioner, CGST Division-II, Rajkot and accordingly, the Assistant Commissioner directed the Superintendent, CGST, Range Shapar, Rajkot to cancel the GST registration of assessee firm under section 29(2)(e) of the CGST Act,2017. It was held that by issuing a cryptic show cause notice, the authorities had violated the principles of natural justice. From the impugned order as well as the show cause notice, the reasons for cancellation were not decipherable therefrom. Therefore, the show cause notice and the impugned order were quashed and set aside. The show cause notice as well as the order cancelling the registration were quashed and set aside with a liberty reserved to the Respondent to issue a fresh notice with particulars of reasons incorporated with details, and thereafter, to provide reasonable opportunity of hearing to the writ petitioner and to pass appropriate speaking order on merits.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Rule returnable forthwith. Mr. Priyank Lodha, learned Senior Standing Counsel waives service of notice of rule on behalf of the respondent. With consent of the learned advocates appearing for the respective parties, the matter is taken up for final hearing today.
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