Case Law Details
Sing Traders Vs State Of Gujarat (Gujarat High Court)
Introduction: The Gujarat High Court recently delivered a significant judgment in the case of Sing Traders vs. State of Gujarat, addressing the petitioner’s challenge to the cancellation of their GST registration. The court found the show-cause notice and subsequent order to be vague and non-speaking, leading to the quashing of the cancellation order.
Detailed Analysis: Sing Traders, registered under the Gujarat Goods and Service Tax Act, 2017, received a show-cause notice dated 14.02.2022, citing reasons for registration cancellation, including suspicion and the absence of documents at the place of business. The notice mandated a response within seven days and a personal hearing on 21/02/2022. Failing compliance, the registration was suspended from 14/02/2022.
On 22.02.2022, an ex-parte order of cancellation was passed by the State Tax Officer, Ghatak-13, Ahmedabad, stating non-submission of a reply and absence on the hearing date. The order specified the effective date of cancellation as 11/01/2022 and outlined the payable amounts, which the court found to be without proper basis.
The Gujarat High Court, upon hearing arguments from both sides, concluded that both the show-cause notice and the cancellation order were vague and lacked essential particulars. The court quashed the order dated 22.02.2022 and remitted the matter to the respondent No.2 for fresh proceedings in accordance with the law. The judgment also reinstated the GST registration of Sing Traders.
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