Gujarat HC Pulls Up GST Authority Over “Cryptic” SCN For Cancelling Registration Despite 2022 Directions

The Gujarat High Court on Friday criticized the GST authorities over their failure to comply with two years old guidelines issued by it in Aggrawal Dyeing & Printing vs. State of Gujarat (2022) for issuance of reasoned show cause notices (SCN) for cancellation of GST registration.

In that case, the HC had directed the authorities to include all necessary particulars in the SCN and had cautioned them against “travelling beyond” the notice in their final order.

The Division bench of Justice Bhargav D. Karia & Justice Niral R. Mehta remarked,

“Aforesaid judgement was rendered in the year 2022. However, in spite of the above direction issued by this Court, the respondent-authorities without following such directions are issuing cryptic notice and order for cancellation of registration number of the petitioner.”

In the case at hand, the petitioner- Gayatri Steel- claimed it was not provided an opportunity of hearing and the final order was passed by Assessing Officer without assigning any reason for cancellation of registration.

The appeal preferred by the petitioner under Section 107 of the GST Act was also dismissed.

High Court quashed the cancellation of registration and remanded the matter back for reconsideration but, it clarified that registration of the petitioner shall remain suspended till SCN is decided by the Assessing Officer as per timeline fixed by the High Court.

Appearance: Advocate Paresh Dave for Petitioner; Advocate Hetvi Sancheti for Respondents.

Case title: M/S. Gayatri Steel Company Vs. The Union of India & Ors.

LL Citation: 2024 LiveLaw (Guj) 137

Case No.: R/SCA/10359/2024

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