Khachore Harcharan Shahu vs. State Of Gujarat
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The petitioner, Khachore Harcharan Shahu, filed a writ-application before the Gujarat High Court challenging a show-cause notice dated March 17, 2022, issued by the Assistant Commissioner, Ghatak-23 (Ahmedabad), Range-6, Division-2, Gujarat. The notice, in Form GST REG-17/31, indicated that the petitioner's Goods and Services Tax (GST) registration was liable for cancellation on the grounds of obtaining registration by means of fraud, wilful misstatement, or suppression of facts. The notice directed the petitioner to furnish a reply within seven working days and appear for a personal hearing on March 28, 2022. It also stated that the registration stood suspended with effect from March 17, 2022. The petitioner sought to quash the show-cause notice and restore their GST registration.
Held
The Court held that the impugned show-cause notice was vague. It relied on its previous decision in Aggarwal Dyeing and Printing Works vs. State of Gujarat & 2 Ors., which had addressed the issue of vague show-cause notices in GST matters. The Court found that the notice issued to the petitioner suffered from similar infirmities. Consequently, the Court quashed and set aside the show-cause notice. As a direct consequence of quashing the notice, the petitioner's GST registration was ordered to be restored. The Court also clarified that it would be open for the department to issue a fresh show-cause notice in accordance with the law, if they so choose.
Key Issues
1. Whether the show-cause notice dated March 17, 2022, issued by the Assistant Commissioner for cancellation of GST registration is vague and liable to be quashed, considering the principles laid down in the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat & 2 Ors.? The petitioner argued that the show-cause notice was excessively vague and did not provide sufficient grounds for the proposed cancellation of their GST registration. They relied on the decision of this Court in Aggarwal Dyeing and Printing Works vs. State of Gujarat & 2 Ors., Special Civil Application No.18860 of 2021, decided on February 24, 2022, which dealt with similar issues of vague show-cause notices. The respondent (State of Gujarat) did not record any specific arguments in the judgment regarding the vagueness of the notice or in opposition to the petitioner's reliance on the precedent.
Sections Cited
Rule 22(1), Rule 21A
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA)
By this writ-application under Article 226 of the Constitution of India, the writ-applicant has prayed for the following reliefs: 6(a) To issue a writ in the nature of certiorari and/or any other appropriate writs, order or direction quashing and setting aside show-cause notice dated 17-03-2022 issued by Assistant Commissioner, Ghatak-23 (Ahmedabad), Range-6, Division-2, Gujarat and all proceedings that may have been initiated pursuant thereto; (b) To issue a writ of mandamus commanding the Assistant Commissioner, Ghatak-23 (Ahmedabad), Range-6, Division-2, Gujarat to restore the registration of petitioner under Goods and Services Tax Act, 2007 immediately; (c) To pass an ex-parte ad interim order staying the operation and implementation of show-cause notice dated 17.03.2022 issued by Assistant Commissioner, Ghatak-23 (Ahmedabad), Range-6, C/SCA/7853/2022 ORDER DATED: 27/04/2022 Division-2, Gujarat and all proceedings that may have been initiated pursuant thereto; pending the hearing and final disposal of present petition; and (d) Grant such further and other interim reliefs, as this Hon’ble Court may deem fit and proper in the present nature and circumstances of the case.
The subject matter of challenge in the present writ-application is to the show-cause notice issued by the Assistant Commissioner, Ghatak-23 (Ahmedabad), Range-6, Division-2, Gujarat, dated 17.03.2022 in the Form GST REG-17/31. The show-cause notice reads thus:- Form GST REG-17/31 [See Rule 22(l) sub-rule (2A) of rule 21A] Reference Number:ZA240322084245T Date:17/03/2022 To, Registration Number (GSTIN/Unique ID):24FKKPS9499Q1ZL KHACHORE HARCHARAN SHAHU Shed No.5/B/1/3, UDAY IND. ESTATE, OPP. ODHAV POLICE STATION, ODHAV, Ahmedabad, Gujarat-382415. 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:
In case, Registration has been obtained by means of fraud, wilful misstatement or suppression of facts. 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 on 28/03/2022 at 12:00. 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 merits. Please note that your registration stands suspended with effect from 17/03/2022. C/SCA/7853/2022 ORDER DATED: 27/04/2022 Place:Gujarat Date:17/03/2022 SERVICES TAX NETWORK(4) Date:2022.03.17 15:46:04 IST AMEE GAURAV JASANI Assistant Commissioner Ghatak 23 (Ahmedabad):Range-6:Division-2, Gujarat
We have heard Mr. Maulik Nanavati, the learned counsel appearing for the writ-applicant and Mr. Utkarsh Sharma, the learned AGP appearing for the respondents.
The impugned show-cause is as vague as anything. The issue is now covered by the decision of this Court in the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat & 2 Ors., Special Civil Application No.18860 of 2021, decided on 24.02.2022. 5. In view of the aforesaid, this writ application succeeds and is hereby allowed. The impugned show-cause notice is hereby quashed and set aside. As we have quashed the impugned show-cause notice, the GST registration stands restored. It shall be open for the department to issue a fresh show-cause notice in accordance with law. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA
Reproduced from the public record of the Gujarat High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.