HC Set Aside SCN & Order Cancelling GST Registration Since SCN was Merely Uploaded on Portal
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- Last Updated on 3 August, 2023
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Case Details: Mayel Steels (P.) Ltd. v. Union of India - [2023] 153 taxmann.com 50 (Bombay)
Judiciary and Counsel Details
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- G.S. Kulkarni & Jitendra Jain, JJ.
- Bharat Raichandani & Prathamesh Gargate, Advs. for the Petitioner.
- Ram Ochani, Ms Neeta Masurkar, Himanshu Takke & Manish Upadhye for the Respondent.
Facts of the Case
The department issued a show cause notice (SCN) to the petitioner calling upon it to remain present next day. The petitioner submitted reply to SCN a week later after it became aware of SCN since it was uploaded in GST portal.
In the meanwhile, the department also issued orders under FORM GST DRC-22 for provisional attachment of bank account/property under Section 83 of the CGST/SGST Act, 2017. It filed writ petition and contended that the adjudication of SCN overlooked the basic principles of natural justice and it was never granted an opportunity of being heard.
High Court Held
The Honorable High Court noted that despite being put to notice of filing of this petition, the Superintendent, CGST proceeded to pass order cancelling petitioner’s registration. The Superintendent acted in an arbitrary manner in exercising powers vested in him when he passed the impugned order in breach of the principles of natural justice. Therefore, it was held that the impugned SCN and cancellation order were liable to be set aside.
The Court also held that whenever action is intended to be taken by the department in respect of registration of dealers, it is expected that SCN in that regard should not be merely uploaded on Web-portal but also copy of the same be forwarded to dealers by e-mail and/or by hand delivery, so that same are effectively replied.
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