M/S D.M. Traders vs. Union Of INDIA And Another
Held
The Court held that the petitioner should first submit a reply to the show cause notice, raising all objections. Interference at this stage was deemed inappropriate as the petitioner had approached the court without filing a reply.
Facts
The petitioner challenged a show cause notice for cancellation of GST registration, arguing it lacked material details and reasons. The respondent pointed to proceedings under Section 129(1)(b) of the CGST Act for issuing invoices without goods and wrongful ITC availment.
Key Issues
Whether a show cause notice for cancellation of GST registration is valid if it lacks specific reasons and material facts. Whether a writ petition is maintainable when the petitioner has not first responded to the show cause notice.
Sections Cited
Section 129, Section 107
AI-generated summary — verify with the full judgment below
Court No. - 39 Case :- WRIT TAX No. - 1342 of 2022 Petitioner :- M/S D.M. Traders Respondent :- Union Of India And Another Counsel for Petitioner :- Abhishek Kumar Tripathi Counsel for Respondent :- A.S.G.I.,Krishna Agarawal,Ugrasen Kumar Pandey Hon'ble Mrs. Sunita Agarwal,J. Hon'ble Vipin Chandra Dixit,J. Heard learned counsel for the petitioner. Sri Krishna Agarwal, learned Advocate has put in appearance on behalf of respondent no.
The present petition is directed against the show cause notice dated 18.08.2022, whereby, the petitioner has been called upon to explain as to why proceeding for cancellation of registration be not initiated against him. The show cause notice also records that the registration of the petitioner has been suspended w.e.f.18.08.2022. It is sought to be submitted by learned counsel for the petitioner that no reason has been provided in the show cause notice as to why the proceeding for cancellation of registration under the CGST Act is sought to be initiated against the petitioner. The show cause notice lacks in all material details so as to enable the petitioner to submit proper reply to the same. Reliance has been placed on the decision of the Apex
The judgment continues below.
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