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April 19, 2022

Gujarat HC warns GST Department for issuing Vague GST Registration cancellation Order  

by CA Shivam Jaiswal in GST

Gujarat HC warns GST Department for issuing Vague GST Registration cancellation Order  

Facts of the case

1. Rule returnable forthwith. Mr. Utkarsh Sharma, the learned AGP waives service of notice of rule for and on behalf of the respondents nos.1 and 3 respectively.

 2. The respondent no.2 – Mr. Sandeep Mahendrabhai Patel, State Tax Officer, Ghatak-1, Ahmedabad, Range-1, Division-1, Gujarat has been impleaded in his personal capacity as the writapplicant feels that he has acted in a very high-handed manner. If any Officer has been impleaded in his personal capacity, we don’t expect the AGP to appear for him and defend his action. 

3. By this writ-application under Article of the Constitution of India, the writ-applicant has prayed for the following reliefs:-

  • (a) To issue a writ in the nature of certiorari and or any other appropriate writ, order or direction quashing and setting aside order made by State Tax Officer, Ghatak 1, Ahmedabad cancelling the Goods and Service Tax Registration of petitioner, and direct restoration or revival of registration of the petitioner firm,
  •  (b) To pass an order holding and declaring respondent no.2 guilty of willful disobedience of the order passed by this Hon’ble Court,
  •  (c) To pass an ex-parte ad interim order staying the operation and implementation of cancellation order dated 29.03.2022 issued by State Tax Officer, Ghatak-1, Ahmedabad and stay all further proceedings pursuant to the order of cancellation of registration pending the hearing and final disposal of present petition,
  • (d) Grant such further and other interim relief, as this Hon’ble Court may deem fit and proper in the present nature and circumstances of the case.”

 4. This is a second round litigation. This litigation could be said to have been created by the respondent no.2 for no good reason. It all started with issue of a very vague show-cause notice dated 29.03.2022 calling upon the writ-applicant to show cause as to why his GST registration should not be cancelled.

 5. The show-cause notice being as vague as anything, the writ applicant came to this High Court by filing the Special Civil Application number.

 6. The Special Civil Application No.6008 of 2022 referred to above, came to be disposed of by this Court.

Observation

Registration Whereas on the basis of information which has come to notice.  In accordance with the order passed by this Court as above, it was expected of the respondent no.2 to issue a fresh show-cause notice containing all the necessary information and material particulars to enable the writ-applicant to meet with the same. However, the respondent no.2 proceeded to pass an order cancelling the registration. The order cancelling the registration on the face of it is as vague as anything.

The court has informed that after the order came to be passed  cancelling the registration, the writ-applicant was asked to file an application seeking revocation of such order. The writ-applicant preferred an application seeking revocation of the order cancelling the registration once-again an absurd and vague order came to be passed by the respondent no.2. Court fail to understand that the respondent no.2 might not have felt even for a second as to what he was doing. We are at pains to observe as to on what basis the respondent no.2 could have even put his signature on such an order. When he signs the order it means he is approving the contents of the order. We have heard Mr. Maulik Nanavati, the learned counsel appearing for the writ-applicant and Mr. Utkarsh Sharma, the learned AGP appearing for the respondents nos.1 and 3 respectively.

Mr. Nanavati, the learned counsel appearing for the writ applicant very emphatically submitted that this a fit case, in which the respondent no.2 should be proceeded for contempt of court. He pressed very hard for issue of notice to the respondent no.2 for contempt. Mr. Nanavati is fully justified in making such a submission. However, we are not issuing any notice for contempt today with a warning to the respondent no.2 that henceforth if this court comes across any such vague order or show-cause notice duly signed by him, then that will be his last day in the office.

Conclusion

 Writ-applicant is hereby quashed and set aside, the GST registration of the writ-applicant stands restored forthwith.. This writ-application stands disposed off.

Gujarat-HC-warns-GST-Department-for-issuing-Vague-GST-Registration-cancellation-Order

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