Bhupendra Singh vs. State Tax Officer Haldwani
Facts
The petitioner, Bhupendra Singh, operating as M/S Bhaiji and Company, challenged a show cause notice dated 06.08.2022 and an order dated 23.08.2022 that cancelled his GST registration. The petitioner contended that the show cause notice was vague, lacking clarity on whom to approach and requiring appearance on a date subsequently declared a holiday, with no further notice issued. The respondent stated that the petitioner's premises were inspected on 19.07.2022, and attempts were made to contact the petitioner telephonically prior to this, which were unsuccessful. The respondent also issued the notice on 06.08.2022, requiring the petitioner to appear on 19.08.2022.
Held
The Court held that the physical verification of the business premises was not conducted in accordance with Rule 25 of the CGST Rules, 2017, as it was not done in the presence of the petitioner, and the inspection report was not uploaded. The Court found that merely making telephonic calls, which were neither received nor returned, did not constitute compliance with the rule. Furthermore, the Court found the show cause notice dated 06.08.2022 to be vague, lacking the name and designation of the issuing authority. The Court also noted that the cancellation order dated 23.08.2022 was passed in non-compliance with Section 29(2) proviso, which mandates an opportunity of hearing. The Court highlighted the contradictory statements within the cancellation order regarding the petitioner's reply. Therefore, the Court quashed both the show cause notice and the cancellation order.
Key Issues
1. Whether the physical verification of business premises conducted by the proper officer, in the absence of the petitioner, and without uploading the report, is in compliance with Rule 25 of the Central Goods and Services Tax Rules, 2017? The petitioner argued that Rule 25 mandates inspection in the presence of the person and requires the report to be uploaded, which did not happen. The respondent argued that telephonic contact was made and that inspections can be surprise visits. 2. Whether the show cause notice dated 06.08.2022 and the subsequent order dated 23.08.2022 for cancellation of GST registration were issued in compliance with Section 29(2) of the Act and principles of natural justice? The petitioner argued that the notice was vague and the cancellation order was passed without affording an opportunity of hearing, citing contradictory statements within the order itself regarding the petitioner's reply. The respondent contended that communication was made as per Section 169 of the Act and that 19.08.2022 was not initially a holiday.
Sections Cited
Section 29, Section 169, Rule 25, Rule 8
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Judgment
Hon’ble Ravindra Maithani, J. (Oral)
The challenge is made to a show cause notice for cancellation of GST Registration dated 06.08.2022 as well as the order dated 23.08.2022, by which, the GST registration of the petitioner has been cancelled.
Heard learned counsel for the parties and perused the record.
The petitioner runs a proprietorship firm under the name and style of M/S Bhaiji and Company as a stockiest of RBM, Reta, Bajri, etc. having a place of business. He is registered under The Uttarakhand/The
2 Central Goods and Services Tax Act, 2017 (“the Act”), with registration No. 05AUYPS2644A1ZG.
On 06.08.2022, a notice was issued to the petitioner on the GST portal. It is the case of the petitioner that the notice was vague. It does not indicate, as to whom the petitioner should meet? It
The judgment continues below.
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