M/S Univarsal Scrap Traders vs. The Superintendent

Held

The Court allowed the writ petition and set aside the impugned order of cancellation dated 10.09.2022 passed by the first respondent. The Court's decision was based on the petitioner's submission that the case was covered by a previous order of the High Court in WP.No.36673 of 2022. Consequently, the Court granted liberty to the first respondent to issue a fresh show cause notice to the petitioner. This notice must clearly indicate the reasons for any alleged violations by the petitioner, provide sufficient time for the petitioner to submit a reply, and then consider the reply before passing an appropriate order. No costs were awarded.

Facts

The petitioner filed a writ petition challenging the cancellation of their GST registration. The petitioner argued that the cancellation was illegal, arbitrary, highhanded, without jurisdiction, and violated principles of natural justice and constitutional rights. The petitioner contended that the present writ petition was covered by a previous order of the High Court in WP.No.36673 of 2022. The impugned order of cancellation was passed by the first respondent on 10.09.2022.

Key Issues

1. Whether the cancellation of the petitioner's GST registration was illegal, arbitrary, highhanded, without authority of law and jurisdiction, and vitiated by a violation of the principles of natural justice and Articles 19 and 21 of the Constitution of India? Petitioner's arguments: The petitioner contended that the cancellation order was illegal and arbitrary. They specifically argued that the writ petition was squarely covered by the High Court's order dated 16.11.2022 in WP.No.36673 of 2022, implying that the grounds for cancellation in this case were similar to those addressed in the prior judgment. Revenue's arguments: The judgment does not record any specific arguments made by the respondents (revenue).