Jaiprakash Thekedar Vs Commissioner, Commercial Taxes (Allahabad High Court)
Allahabad High Court held that GST registration cancellation notice is not in the prescribed format and didn’t mention the date and time on which personal hearing is granted. Proceedings based on such notice is illegal, void and a nullity in eyes of law.
Facts- The petitioner is aggrieved by cancellation of the registration of the petitioner-firm under the provisions of the Uttar Pradesh Goods and Services Tax Act, 2017 and the coercive action sought to be taken against the petitioner as a result of cancellation of the registration.
Conclusion- The show cause notice which has been given to the petitioner is not in prescribed format as it is conspicuous by absence of the date and time on which the noticee was to appear for personal hearing. It is also clear from the prescribed format that the noticee has to be afforded opportunity of personal hearing and for that purpose he has to be informed in advance, the date and time on which hearing will take place. Since in the instant case, the show cause notice does not mention the date and time appointed for personal hearing, therefore, in our opinion, the proceedings held in pursuance thereof are rendered illegal, void and a nullity in the eyes of law. Resultantly, the impugned order is hereby quashed.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Ms Pooja Talwar, learned counsel for the petitioner and Sri Ankur Agarwal, learned counsel for the revenue.
2. The petitioner is aggrieved by cancellation of the registration of the petitioner-firm under the provisions of the Uttar Pradesh Goods and Services Tax Act, 2017 and the coercive action sought to be taken against the petitioner as a result of cancellation of the registration.
3. The petitioner was given a show cause notice on 31.08.2019 requiring the petitioner to submit reply within seven working days from the date of service of the notice. The notice further mentions that if the petitioner fails to furnish reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records on merits. It was followed by impugned cancellation order dated 21.09.2019 which reads as below :
“This has reference to your reply dated 10/09/2019 in response to the notice to show cause dated 31/08/2019 whereas no reply to notice to show cause has been submitted.
The effective date of cancellation of your registration is 21/09/2019
Determination of amount payable pursuant to cancellation :
Accordingly, the amount payable by you and the computation and basis thereof is as follows :
The amounts determined as being payable above are without prejudice to any amount that may be found to be payable you on submission of final return furnished by you.
You are required to pay the following amounts on or before 01/10/2019 failing which the amount will be recovered in accordance with the provisions of the Act and rules made thereunder.
