Rayees Metal Vs Deputy State Tax Officer (Telangana High Court)
n a significant ruling, the Telangana High Court has set aside a show cause notice for cancellation and subsequent suspension of Goods and Services Tax (GST) registration for Rayees Metal, citing the notice’s lack of specific details as a violation of natural justice principles and the taxpayer’s right to livelihood. The court observed that the cryptic nature of the notice prevented the petitioner from filing an effective reply, rendering the action unsustainable.
The case, Rayees Metal Vs Deputy State Tax Officer, centered on a show cause notice issued to the petitioner on February 29, 2024. The notice, which served as the basis for suspending the firm’s GST registration, merely cited Section 29(2)(e) of the Central Goods and Services Tax Act, 2017, stating the registration was obtained by “fraud, willful misrepresentation or suppression of facts.” Crucially, the notice failed to provide any specific instances or details of the alleged fraud, misrepresentation, or suppression.
The petitioner, represented by learned counsel Sri Goondla Venkateswarlu, argued that the notice was a mere reproduction of the statutory language and lacked the necessary factual foundation for the serious allegations made. This absence of detail, it was contended, made it impossible for Rayees Metal to understand the case against them and formulate a proper response. The abrupt suspension of registration, the petitioner argued, severely impacted their business and infringed upon their right to livelihood, a right protected under Article 21 of the Constitution of India. The petitioner also highlighted that repeated representations to the authorities had yielded no positive outcome, characterising the action as arbitrary and high-handed.
