The order to terminate GST registration was overturned by the Supreme Court because it was vague and nonspeaking.
Facts and issues of the case
The writ applicant is registered under the Gujarat Goods and Service Tax Act, 2017 (for short ‘the Act, 2017). A show cause notice dated 14.02.2022 was issued by the State Tax Officer, Ghatak – 13, Ahmedabad, in Form GST REG-17/31 under Section 29 of the CGST Act, 2017 read with Rule 22(1) of the CGST Rules, 2017.
Pursuant to the show cause notice, the writ applicant was required to submit his reply within a period of seven days, failing which, the case was to be decided ex-parte. On 22.02.2022, the State Tax Officer, Ghatak-13, Ahmedabad, passed ex-parte order of cancellation of registration. The contents of the said order reads thus:“Order for Cancellation of Registration.This has reference to your reply dated 21/02/2022 in response to the notice to show cause dated 14/02/2022. Whereas no reply to notice to show cause has been submitted; Whereas on the day fixed for hearing you did not appear,The effective date of cancellation of your registration is 11/01/2022. 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. Assessee is required to pay the following amounts on or before 04/03/2022 failing which the amount will be recovered in accordance with the provisions of the Act and rules made thereunder.”
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Observation by the court
The court had heard Ms. Manvi Damle, the learned counsel appearing for the writ applicant and Mr. Utkarsh Sharma, the learned AGP appearing for the respondents.On bare perusal of the the contents of the show cause notice as well as the impugned order, we find that the said show cause notice is absolutely vague, bereft of any material particulars and the impugned order is also vague and a non- speaking order. We quash and set aside the impugned order dated 22.02.2022 and remit the matter to the respondent No.2 for denovo proceedings in accordance with law. In view of the fact that we have quashed the order of cancellation of GST registration, the GST registration stands revived.
The appeal of the assessee stands disposed of.Sing-Traders-Vs-State-of-Gujarat-Gujarat-High-Court-1-1