Azizur Rahman Choudhury vs. The Union Of INDIA And 5 Ors
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The petitioner, Azizur Rahman Choudhury, a contractor registered under GST, defaulted in tax payment for six months. A Show Cause Notice for cancellation of his GST registration was issued on 16.11.2021. The petitioner claims he received this notice only in May 2022, thus not getting adequate opportunity to reply. Consequently, his GST registration was cancelled on 30.11.2021. He then approached GST authorities for revocation, offering to clear pending taxes and penalties. As no action was taken on his request, he filed the instant writ petition before the Gauhati High Court.
Held
The Court disposed of the writ petition without delving into the merits of the petitioner's claim regarding the adequacy of opportunity to reply to the Show Cause Notice. The Court took note of the submissions by the learned Standing Counsel for the GST authorities regarding a recent Central Government notification dated 31.03.2023, which allows persons to apply for revocation of cancellation of registration until 30.06.2023. A subsequent State Government notification dated 04.04.2023 also permitted such applications. The Court granted liberty to the petitioner to file a fresh application for revocation in terms of these notifications within the prescribed period. The Court expected that such an application would be considered fairly and transparently, with an opportunity of hearing granted to the petitioner. No specific finding was made on the petitioner's original plea of inadequate opportunity.
Key Issues
1. Whether the petitioner was afforded adequate opportunity to reply to the Show Cause Notice for cancellation of his GST registration, considering the timing of its issuance and alleged delayed receipt of information by the petitioner? (Mixed question of law and fact, turning on principles of natural justice and procedural fairness under GST law). Petitioner's Arguments: The petitioner argued that the Show Cause Notice was issued during the pandemic, and due to non-receipt of timely information, he could not file a reply. He emphasized his bona fide by offering to clear all pending taxes and penalties in his revocation request. Revenue's Arguments: The revenue, through the learned Standing Counsel, submitted that the Court need not delve into the merits of the case due to a recent Central Government communication dated 31.03.2023. They highlighted a notification providing time until 30.06.2023 for persons to apply for revocation of cancelled GST registration.
Sections Cited
Section 29
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Cause title — parties, addresses and appearances
ORDER 10.04.2023 Heard Shri B.P. Borah, learned counsel for the petitioner. Also heard Shri B. Choudhury, learned Standing Counsel, Finance (Taxation) Department, Government of Assam as well as Shri S.C. Keyal, learned Standing Counsel, CGST. Considering the subject matter in dispute and also the development which had taken place in the meantime, this writ is taken up for disposal at the admission stage. The petitioner claims to be a contractor working for various department of the Government of Assam. He is registered under the Goods and Services Tax Act, 2017, with registration No. 18AKXPC8017G1ZV on 23.03.2021. It is the case of the petitioner that he had defaulted in payment of tax for 6 months and accordingly on 16.11.2021, he was served with a Show Cause Notice as to why his GST registration should not be cancelled. However, the information of such Show Cause Notice according to the petitioner was received by him only in May, 2022 and accordingly he did not get adequate opportunity to reply to the said Show Cause Notice. On 30.11.2021, the cancellation order was issued whereafter the petitioner had approached the GST authorities for revocation of Page No.# 3/4 the cancellation. It is the case of the petitioner that he had offered to clear all the pending taxes with requisite penalties. Since, no action was taken on his request, the instant writ petition has been filed. Shri Borah, the learned counsel for the petitioner submits that the show cause notice was issued at the time of the pandemic and only because of the reason that the petitioner was not informed about it, he could not file the reply. However, the bona fide of the petitioner is reflected by the fact that in his representation for revocation of the cancellation order, he had made an offer to clear all the pending taxes as well as penalties, if any. Shri B. Choudhury, learned Standing Counsel, GST, however submits that this Court may not be required to go into the merits of the case in view of a recent communication of the Central Government dated 31.03.2023. The learned Standing Counsel, however has placed on record a very recent notification of the authorities dated 31.03.2023 wherein, cases of the present nature have been taken into consideration and time up-to 30.06.2023 has been given to persons who may apply for revocation of cancellation of the registration. He submits that the petitioner can take the aid of the said notification and submit a fresh response which would be considered in terms of the aforesaid notification. He further submits that the State Government has subsequently issued a notification dated 04.04.2023, whereby the aforesaid Office Memorandum dated 31.03.2023 has been allotted and liberty was granted to all such class of persons to apply for revocation of the cancellation of registration. In view of the aforesaid facts and circumstances and the submissions made by the learned Standing Counsel, the instant writ petition is disposed of Page No.# 4/4 by giving liberty to the petitioner to file necessary application in terms of the aforesaid notifications dated 31.03.2023 and 04.04.2023 in the manner prescribed therein and within the period of 30.06.2023. Since the notification itself provides for application for revocation of the license, it is expected that such application would be considered in a fair and transparent manner by giving opportunity of hearing to the petitioner. Writ petition accordingly stands disposed of. JUDGE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.