Jagdamba Enterprises Vs Superintendent (Rajasthan High Court)
Vague Show-Cause Notices and Unreasoned Cancellation Orders: Rajasthan High Court Quashes GST Registration Cancellation in Jagdamba Enterprises
Summary: The Rajasthan High Court allowed the writ petition filed by Jagdamba Enterprises and quashed the GST show-cause notice dated 02.03.2023 and cancellation order dated 13.05.2024. The Court found that the show-cause notice merely reproduced the allegation that registration had been obtained through fraud, willful misstatement or suppression of facts without specifying the details of the alleged fraud, misstatement or suppression. The cancellation order also failed to state the ground on which registration was cancelled and was found to reflect complete non-application of mind. The Court further noted that the notice required appearance on the same date, 02.03.2023, at 11:30 a.m., leaving insufficient time to respond. It rejected the contention that the availability of an alternate remedy barred exercise of jurisdiction under Article 226 where apparent illegality was disclosed. The Court held that the petitioner could not reasonably respond to facts that had not been specified in the notice. The notice and cancellation order were therefore set aside, subject to payment of costs of ₹20,000, with liberty to the respondents to initiate fresh proceedings from the show-cause notice stage.
