Cancellation of GST Registration is not Sustainable if SCN and Order are Vague: HC
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 21 March, 2023
Latest from Taxmann
Case Details: Gigamade Machineries (P.) Ltd. v. State of Gujarat - [2023] 148 taxmann.com 309 (Gujarat)
Judiciary and Counsel Details
-
- Ms Sonia Gokani & Sandeep N. Bhatt, JJ.
- Maulik Nanavati, Adv. for the Appellant.
- Trupesh Kathiriya for the Respondent.
Facts of the Case
The department issued a show cause notice (SCN) for cancellation of registration to the petitioner and stated that “Taxpayer found non-functioning / not existing at the principal place of business”. In reply to the said show-cause notice, the petitioner specifically stated that the notice didn’t give any reasons for initiating process of cancellation of GST registration of the petitioner.
However, the registration was cancelled and the order of cancellation did not record any reasons for cancellation of GST registration. It filed writ petition against the order.
High Court Held
The Honorable High Court noted that the Authority should have at least referred to contents of notice and response by petitioner. In the instant case, the reasons for initiating process of cancellation were not mentioned in SCN. Moreover, the SCN was vague, bereft of any material particulars and impugned order was also vague and not a speaking order.
Therefore, the principles of natural justice were violated as registration had been cancelled without adducing proper reason. Thus, it was held that the impugned SCN and order were to be set aside and the Authority was at liberty to issue fresh notice for cancellation of registration.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
