Surya Trade Link Through Proprietor Kunal Jigneshbhai Shah vs. State Of Gujarat

Facts

The petitioner, Surya Trade Link, through its proprietor Kunal Jigneshbhai Shah, filed a Special Civil Application before the Gujarat High Court. The petition sought to quash and set aside a notice dated September 26, 2022, issued by the revenue authorities, which called upon the petitioner to show cause why its Goods and Services Tax (GST) registration should not be cancelled. The petitioner also sought the restoration of its GST registration, which had been suspended pending the determination of the show-cause notice. The amount in dispute was not specified. The procedural history involved the issuance of the show-cause notice and the subsequent suspension of registration, leading to the filing of the writ petition.

Held

The Court did not enter into the merits of the case. The learned AGP for the State of Gujarat produced a communication dated November 9, 2022, stating that the attachment had already been lifted. In light of this development, the learned advocate for the petitioner verified the details and sought to withdraw the petition. The Court, without delving into the legality of the show-cause notice or the suspension of registration, permitted the withdrawal of the petition. Therefore, no specific finding was made on the illegality of the notice or the suspension. The ratio decidendi would be that a petition can be withdrawn if the grievance is redressed during its pendency. The operative direction was to permit the withdrawal of the petition, and it was disposed of accordingly.

Key Issues

1. Whether the notice dated September 26, 2022, bearing reference no. ZA240922191427B, calling upon the petitioner to show cause for cancellation of its GST registration, and the consequent suspension of its registration, are illegal and bad in law, thereby warranting quashing and setting aside under Article 226 of the Constitution of India. The petitioner argued that the notice and suspension were illegal and sought their quashing and setting aside, along with the restoration of their GST registration. The revenue, represented by the learned AGP, did not present arguments on the merits of the case. Instead, they produced a communication indicating that the attachment had been lifted, rendering the cause of action moot.