Syed Jafar Abbas vs. Commercial Tax Officer
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The petitioner, Syed Jafar Abbas, filed a writ application challenging an order dated 04.06.2020 passed by the Commercial Tax Officer, Ghatak-7, Ahmedabad, cancelling his GST registration effective from 24.10.2018. The petitioner sought quashing of the cancellation order and restoration of his registration. The petitioner's GST registration number was 24BCSPA7479Q1ZO, issued on 30.11.2018. The petitioner argued that the cancellation order was passed without providing an opportunity to present his case and without issuing a proper show-cause notice. The revenue, represented by the learned AGP, conceded that the impugned order lacked material particulars and was passed without issuing a show-cause notice in Form GST REG-17.
Held
The Court held that the impugned order dated 04.06.2020 cancelling the petitioner's GST registration was liable to be quashed and set aside on two grounds: (i) no show-cause notice in Form GST REG-17 was issued to the petitioner, and (ii) the cancellation order was bereft of any details, thus denying the petitioner an opportunity to put forward their case. The Court found that the principles of natural justice were violated. The learned AGP for the revenue conceded these points. Consequently, the writ application was allowed. The matter was remitted to the Commercial Tax Officer, Ghatak-7, Ahmedabad. The authority was directed to issue a show-cause notice in Form GST REG-17, provide an opportunity of hearing to the petitioner, and then pass an appropriate order. This exercise was to be completed within four weeks. The Court clarified that if the authority found no reason to cancel the registration, the original registration should be restored.
Key Issues
1. Whether the order dated 04.06.2020 cancelling the petitioner's GST registration is liable to be quashed and set aside for non-compliance with procedural requirements under the GST law? Petitioner's Arguments: The petitioner contended that the cancellation order was invalid because no show-cause notice in Form GST REG-17 was issued, and the order itself was bereft of any details, thereby denying the petitioner an opportunity to present their case. The petitioner relied on the principles of natural justice. Revenue's Arguments: The learned AGP for the respondent revenue fairly conceded that the impugned order dated 04.06.2020 was not only bereft of material particulars but was also passed without issuing the mandatory show-cause notice in Form GST REG-17.
Sections Cited
GST REG-17
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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: “A. A writ in the nature of certiorari and or any other appropriate writs, order or direction be issued for quashing and setting aside the impugned order dated 04.06.2020 of cancellation of registration of the petitioner. B. This Hon'ble Court may be pleased to issue a writ or Mandamus or any other appropriate writ directing to recall the impugned order of cancellation of the registration of the petitioner with effect from 24.10.2018 and to restore the registration of the petitioner with effect from 24.10.2018. C. During the pendency and/or final disposal of the present petition, this Hon'ble Court may be pleased to stay the operation, implementation of the impugned order dated 04.06.2020 if cancellation of the registration certificate of the petitioner being registration certificate Number
24BCSPA7479Q1ZO,
issued
on 30.11.2018. C/SCA/14423/2020 ORDER D. During the pendency and /or final of the present petition, this Hon'ble Court may be pleased to issue a writ of mandamus directing the respondents to allow the petitioner to do business under the registration
Certificate
Number 24BCSPA7479Q1ZO, issued on 30.11.2018. E. An exparte adinterim relief in terms of para 8 (C) and (D) may kindly be granted.”
We have heard Ms. Reeta Mukherjee, the learned counsel assisted by Mr. Parth Shah, the learned counsel appearing for the writ applicant and Mr. Trupesh Kathiriya, the learned AGP appearing for the State Respondents.
The subject matter of challenge in the present writ application is to the impugned order dated 04.06.2020 cancelling the GST registration of the writ applicant w.e.f. 24.10.2018. We need not delve much into the facts of this litigation as the order impugned deserves to be quashed and set aside outright on two grounds (i) no show cause notice in form GST REG17 was issued and (ii) the impugned order cancelling the registration is bereft of any details. The impugned order is at page 25, AnnexureD to the writ application. We take notice of the fact that the writ applicant had no opportunity to put forward his case before the impugned order of cancellation came to be passed.
Mr. Kathiriya, the learned AGP very fairly submitted that the order impugned dated C/SCA/14423/2020 ORDER 04.06.2020 is not only bereft of any material particulars, but the same has been passed without issuing the showcause notice in Form GST REG17. 5. In the result, this writ application succeeds and is hereby allowed. The impugned order dated 04.06.2020 is quashed and set aside. The matter is remitted to the Commercial Tax Officer, Ghatak7, Ahmedabad, with a direction that, if he intends to pass a fresh order of cancellation of registration, then he shall first issue show cause notice in Form GST REG17 giving an opportunity of hearing to the writ applicant and thereafter, pass an appropriate order. This exercise be completed at the earliest, preferably within a period of four weeks from the date of presentation of this order before the authority. We may clarify that, if the respondent is of the firm view that the registration deserves to be cancelled, only then, he may intend fresh exercise of issuing fresh showcause notice and passing of the fresh order, otherwise, the original registration may restore in accordance with law.
The writ application is accordingly disposed of. (J. B. PARDIWALA, J) (ILESH J. VORA,J) SUCHIT
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.