Dayamay Enterprise vs. State Of Tripura And 3 Ors
Held
The Court held that the impugned show cause notice dated December 16, 2020, is quashed on the ground of being vague and imprecise. The Court reasoned that a notice for cancellation of registration must specify the exact provisions of the GST Act or Rules that have been violated and the manner of such violation to enable the assessee to provide an effective reply. Granting a hearing without such specificity would be an empty formality. Furthermore, the Court noted that no order cancelling the petitioner's registration had been passed. The Court directed the respondents to unblock the petitioner's GST account on the official portal. This decision is without prejudice to the department's right to take steps for recovery of dues or for any breach of law as permitted by the rules and regulations.
Facts
The petitioner, Dayamay Enterprise, challenged a communication dated December 16, 2020, from the Superintendent of Taxes, Tripura, proposing cancellation of its GST registration. The notice cited "non-compliance of any specified provisions in the GST Act or the Rules made thereunder" as the reason, without specifying the provisions or the nature of non-compliance. The petitioner was directed to reply within seven working days and appear for a hearing on December 24, 2020. The petitioner replied around January 1, 2021, but no order had been passed. Meanwhile, the petitioner's GST account on the portal was blocked. The petitioner filed a writ petition challenging the notice and the blocked account.
Key Issues
1. Whether the show cause notice dated December 16, 2020, for cancellation of GST registration is liable to be quashed on the ground of being vague and imprecise, contrary to the principles of natural justice and Section 29(2) of the CGST Act, 2017, read with Rule 21 of the CGST Rules, 2017. Petitioner's contention: The show cause notice is vague as it does not specify the particular provisions of the GST Act or Rules that were allegedly violated, nor does it detail the manner of non-compliance. This makes it impossible for the petitioner to effectively respond and renders the personal hearing a mere formality. Revenue's contention: The petitioner has substantial dues to the department which have not been paid despite notices. (This contention appears to be a general statement regarding the petitioner's financial standing rather than a direct response to the vagueness of the notice).
Sections Cited
Section 29(2), Rule 21
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HIGH COURT OF TRIPURA AGARTALA
WP(C) No.89/2021 Dayamay Enterprise ……... Petitioner(s). Vs. State of Tripura and 3 Ors. ……... Respondent(s).
For Petitioner(s) : Mr. Biplabendu Roy, Advocate.
For Respondent(s) : Mr. P K Dhar, Sr. Govt. Advocate, M. H Sarkar, Advocate, Ms. S Nag, Advocate.
HON’BLE THE CHIEF JUSTICE MR. AKIL KURESHI HON’BLE JUSTICE MR. S G CHATTOPADHYAY
_O_R_D_E_ R_
22/02/2021 (Akil Kureshi, CJ).
Petitioner has challenged a communication dated 16th December 2020, issued by the Superintendent of Taxes calling upon the petitioner to appear for personal hearing why the petitioner’s registration under GST Act not be cancelled. The petitioner has also questioned the action of the respondents in blocking the petitioner’s registration on the portal of the department.
The facts are that the petitioner is a proprietor, engaged in purchase and sale of consumables and other taxable goods for which purpose the petitioner enjoys registration under the State as well as
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Central GST Acts. On 16th December 2020, the Superintendent of Taxes issued a sh
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