Allegations Contained in SCN Were Vague: Calcutta High Court Suspends Order Cancelling GST Registration
The Calcutta High Court bench consisting of Justice Md. Nizamuddin has suspended the order cancelling GST registration on the grounds that the allegations contained in the show cause notice were vague.The petitioner/assessee challenged the show-cause notice for cancellation of the GST registration of the petitioner and suspended the registration of the petitioner by the...
The Calcutta High Court bench consisting of Justice Md. Nizamuddin has suspended the order cancelling GST registration on the grounds that the allegations contained in the show cause notice were vague.
The petitioner/assessee challenged the show-cause notice for cancellation of the GST registration of the petitioner and suspended the registration of the petitioner by the show-cause notice itself.
The petitioner challenged the impugned show-cause notice on the ground that the show-cause notice was passed without providing any opportunity for hearing to the petitioner.
The order of cancellation of registration was the non-speaking order and also on the ground of non-application of mind by recording in the order of cancellation that the respondent/department has considered the reply in response to the impugned show-cause notice, when in fact, no such reply was given.
The court was convinced that the allegation of the petitioner was correct since no reason has been given in the impugned order of cancellation, which was a non-speaking order, which was not sustainable in law. The order of cancellation of registration of the petitioner is set aside and all legal consequences will follow.
"So far as part of the impugned show-cause notice for cancellation of registration, where registration of the petitioner has been suspended, this part of the impugned order will remain suspended since the allegation in the impugned show-cause notice is very vague and a one-line allegation without any basis, and for the ends of justice, a person against whom a show-cause notice has been issued should be at least provided in brief the basis of such an allegation so that the person can meet the allegations in the show-cause notice," the court said.
The court added that order shall remain suspended till the reply to the show-cause notice is given.
The court directed the department to provide an opportunity of hearing to the petitioner and dispose of it by passing a reasoned and speaking order in accordance with the law.
Case Title: Galaxy Mechanical Engineering Equipments Private Limited Versus Assistant Commissioner
Case Citation: 2022 LiveLaw (Cal) 80
Dated: 03.03.2022
Counsel For Appellant: Advocates Rita Mukherjee, Abhijat Das
Counsel For Respondent: Advocates A. Ray, T. M. Siddiqui, D. Ghosh