Raghav Garg vs. Avato Ward 66 State Goods And Service Tax & Anr.
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The petitioner, Raghav Garg, challenged a Show Cause Notice (SCN) dated September 26, 2024, issued by the Avato Ward 66 State Goods and Service Tax & Anr. The SCN proposed the cancellation of the petitioner's GST registration. The sole reason stated in the SCN for cancellation was "Others," with a remark referencing a letter dated September 19, 2024, received from CGST, Raipur. The petitioner contended that neither an extract nor a copy of this referenced letter was provided. The SCN also directed the petitioner to reply within seven working days and appear for a personal hearing on October 8, 2024, noting that the registration stood suspended effective September 26, 2024.
Held
The Court held that the Show Cause Notice (SCN) dated September 26, 2024, was unsustainable in law. The Court found that the SCN lacked specific reasons for the proposed cancellation of the petitioner's GST registration, merely stating "Others." The Court noted that the petitioner was not made aware of the allegations or material on which the proposed action was based, particularly the letter dated September 19, 2024, from CGST, Raipur, the contents of which were not provided. This failure to disclose the basis of the proposed action violated the principles of natural justice. Consequently, the Court quashed the impugned SCN. However, the Court clarified that this order would not prejudice the rights of the respondent to initiate fresh proceedings in accordance with the law.
Key Issues
1. Whether the Show Cause Notice dated September 26, 2024, is sustainable in law, given that the sole reason provided for the proposed cancellation of GST registration is "Others" without further elaboration or disclosure of the underlying allegations or material, thereby violating the principles of natural justice? (Relates to principles of natural justice and procedural fairness in tax proceedings). Petitioner's Contention: The petitioner argued that the SCN was unsustainable as it failed to assign specific reasons for the proposed cancellation of registration. The vague reason "Others" and the non-disclosure of the contents of the letter from CGST, Raipur, prevented the petitioner from understanding the allegations and effectively responding, thus violating principles of natural justice. Revenue's Contention: The judgment does not record any specific arguments made by the revenue or state in response to the petitioner's contentions.
Sections Cited
None explicitly mentioned in the judgment text provided.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2024
CM APPL. 59431/2024 (Exemption)
Allowed, subject to all just exceptions.
This application stands disposed of. W.P.(C) 14214/2024
The writ petitioner impugns the Show Cause Notice [“SCN”] dated 26 September 2024 and which reads as follows:
“ Show Cause Notice for Cancellation of Registration Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:
Others Remarks: As per letter dated 19.09.2024 received from CGST, Raipur.
You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.
You are hereby directed to appear before the undersigned authority on 08/10/2024 at 16:10. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 15/10/2024 at 12:05:27
If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits. Please note that your registration stands suspended with effect from 26/09/2024. Kindly refer the supportive document attached for case specific details- Not Applicable ”
As is ex facie apparent from the above, the only reason which is disclosed in support of the opinion formed that the registration is liable to be cancelled is “Others”. In the absence of any reasons having been assigned or the petitioner having been made aware of the allegations or material on the basis of which the impugned action was proposed to be taken, we find ourselves unable to sustain the impugned notice.
We further take note of the contention of the petitioner who states that although the aforesaid notice also refers to a letter dated 19 September 2024 received from Central Goods and Services Tax Tribunal, Raipur, neither an extract of that letter nor a copy thereof was provided to the writ petitioner.
In view of the aforesaid, we allow the instant writ petition and quash the impugned SCN dated 26 September 2024. 5. This order, however, shall be without prejudice to the rights of the respondent to draw proceedings afresh and in accordance with law.
YASHWANT VARMA, J.
RAVINDER DUDEJA, J. OCTOBER 8, 2024/ DR This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 15/10/2024 at 12:05:27
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.