Galaxy Mechanical Engineering Equipments Private Limited And Anr. vs. Assistant Commissioner, Bally, And Ors.
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The petitioner, Galaxy Mechanical Engineering Equipments Private Limited & Anr., challenged a show-cause notice issued by the Assistant Commissioner, Bally, West Bengal Goods and Services Tax & Ors. The notice proposed cancellation and suspension of the petitioner's GST registration. The petitioner contended that the cancellation order was passed without an opportunity of hearing, was non-speaking, and erroneously stated that a reply to the show-cause notice had been considered when none was filed. The petitioner argued that the allegations in the show-cause notice were vague and lacked basis. The impugned order of cancellation was issued by the Assistant Commissioner.
Held
The Court held that the impugned order of cancellation of registration was unsustainable in law. It found the petitioner's allegation that the order was non-speaking to be correct, as no reasons were provided in the order itself. Consequently, the impugned order of cancellation of registration was set aside. Regarding the show-cause notice for cancellation and the suspension of registration, the Court observed that this part of the impugned order would remain suspended. The Court reasoned that the allegations in the show-cause notice were vague and without basis, and for justice, a person facing such a notice should be provided with the brief basis of the allegations to enable them to respond. The suspension of registration would remain in effect only until a reply to the show-cause notice is submitted, a hearing is provided, and the matter is disposed of by a reasoned and speaking order in accordance with the law.
Key Issues
1. Whether the impugned order of cancellation of registration is liable to be set aside on the ground that it was passed without providing an opportunity of hearing to the petitioner, as required by law? 2. Whether the impugned order of cancellation of registration is liable to be set aside on the ground that it is a non-speaking order and demonstrates non-application of mind? 3. Whether the impugned show-cause notice for cancellation of registration, which also suspended the petitioner's registration, is sustainable in law given its vague allegations and lack of basis? Petitioner's arguments: The petitioner argued that the cancellation order was passed without affording them a proper hearing. They further contended that the order was non-speaking, failing to provide any reasons for cancellation, and that the respondent wrongly recorded consideration of a reply that was never submitted. The petitioner also asserted that the show-cause notice contained vague allegations without any factual basis, preventing them from adequately responding. Revenue's arguments: The judgment does not record any specific arguments made by the revenue or the State.
Sections Cited
Not specified in the judgment
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2022. p.b. Sl. No.
W.P.A. 2857 of 2022 (Through Video Conference) Galaxy Mechanical Engineering Equipments Private Limited & Anr. Vs. Assistant Commissioner, Bally, West Bengal Goods and Services Tax & Ors. Ms. Rita Mukherjee, Mr. Abhijat Das. ………for the petitioners. Mr. A. Ray, Mr. T. M. Siddiqui, Mr. D. Ghosh. ……….for the State. Heard learned advocates appearing for the parties. In this matter, petitioner has challenged the impugned show-cause notice for cancellation of registration of the petitioner and suspending the registration of the petitioner by the same impugned show-cause notice itself and petitioner has further challenged the impugned show- cause notice for cancellation of registration on the ground that the same was passed without providing any opportunity of hearing to the petitioner and, furthermore, the impugned order of cancellation of registration is a non- speaking order and also on the ground of non-application of mind by recording in the said impugned order of cancellation that the respondent has considered the reply in response to the impugned show-cause notice while in fact, no such reply was given. So far as the allegation with 2 regard to passing a non-speaking order is concerned, on perusal of the aforesaid impugned order of cancellation of the registration, I am convinced that the allegation of the petitioner is correct since no reason has been given in the impugned order of cancellation and is non-speaking order and is not sustainable in law and accordingly the impugned order of cancellation of registration of the petitioner is set aside and all legal consequences will follow. So far as part of the impugned show-cause notice for cancellation of registration, where registration of the petitioner has been suspended this part of the impugned order will remain suspended since the allegation in the impugned show-cause notice is very vague and one line allegation without any basis and for the ends of justice a person against whom a show-cause notice has been issued, he should be at least provided in brief the basis of such allegation so that the person can meet the allegations in show-cause notice. Impugned order of suspension will remain suspended till the reply to the impugned show- cause notice is given and hearing is given on the same and is disposed of by passing a reasoned and speaking order in accordance with law. With this observation and direction, this writ petition being WPA No.2857 of 2022 is disposed of. (Md. Nizamuddin, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.