Shatrughan Shaw Vs Assistant Commissioner of State Tax (Calcutta High Court)
The Calcutta High Court considered a writ petition challenging an appellate order dated February 29, 2023 passed under Section 107 of the WBGST Act, 2017/CGST Act, 2017. The appellate authority had dismissed the petitioner’s appeal against an order dated November 21, 2021, by which the petitioner’s GST registration was cancelled with effect from February 5, 2022. The petitioner explained the delay in approaching the Court by citing illness and the death of the consultant handling the matter.
The petitioner contended that the cancellation of registration with retrospective effect was initiated through an online show-cause notice dated May 10, 2021, which was impermissible in view of binding precedent of the Division Bench of the same Court. It was further submitted that the petitioner had already applied for cancellation of registration since he was no longer carrying on GST-liable business, but that application was arbitrarily rejected. Thereafter, a fresh cancellation proceeding was initiated with retrospective effect on the basis of a vague, one-line show-cause notice, allegedly in violation of principles of natural justice.
The appellate authority rejected the appeal without dealing with the grounds raised, despite specific challenges regarding vagueness of notice and denial of natural justice. The High Court noted that although the petitioner had failed to appear before the appellate authority and ex parte proceedings were justified, the appellate authority, being quasi-judicial, was still required to consider the appeal and the grounds raised therein. The impugned appellate order merely affirmed the original authority’s decision without application of mind.
