Manmish Traders Private Limited vs. State Of Gujarat

SCA/6721/2022HC GujaratGSTCNR GJHC24020601202213 April 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE4 pages

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Facts

Manmish Traders Private Limited (the petitioner) filed a writ-application challenging a show cause notice dated 07.12.2021 and an order dated 17.12.2021 passed by the Commercial Tax Officer, Ghatak 25 (Kalol), cancelling the petitioner's GST registration retrospectively from 29.11.2017. The show cause notice alleged that the registration was obtained by fraud, willful misstatement, or suppression of facts. The petitioner sought to quash these notices and orders, and to direct the respondents to refrain from taking further steps. The respondents are the State of Gujarat and its officials.

Held

The High Court quashed and set aside the show cause notice dated 07.12.2021 and the impugned order dated 17.12.2021 passed by the Commercial Tax Officer. The Court's decision was based on a recent pronouncement in the case of Sing Traders vs. State Of Gujarat. The Court held that the GST registration of the writ-applicant stands restored. The Department was granted liberty to proceed against the writ-applicant in the future on any grounds, provided they follow the due process of law and grant the writ-applicant an adequate opportunity of hearing. The Court made the rule absolute to the extent of quashing the impugned notice and order and restoring the registration.

Key Issues

1. Whether the show cause notice dated 07.12.2021 and the impugned order dated 17.12.2021 passed by the respondent no.3, cancelling the petitioner's GST registration retrospectively, are legal and valid, particularly in light of the procedural fairness and principles of natural justice, and in view of the provisions of the CGST Act, 2017 and relevant rules. The petitioner argued that the show cause notice and the subsequent order cancelling their GST registration were illegal and invalid. They sought relief from the High Court to quash these actions. The petitioner relied on a recent pronouncement of the High Court in the case of Sing Traders vs. State Of Gujarat. The revenue (State of Gujarat) did not record any specific arguments in the judgment. However, they were represented by learned AGP, indicating their opposition to the petitioner's plea.

Sections Cited

Rule 21A, Rule 22(1), Rule 2(2A)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/SCA/6721/2022 ORDER DATED: 13/04/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 6721 of 2022 ========================================================== MANMISH TRADERS PRIVATE LIMITED Versus STATE OF GUJARAT ========================================================== Appearance: MR PRAKASH SHAH, SENIOR ADVOCATE WITH MS. DIMPLE K. GOHIL(7451) for the Petitioner(s) No. 1 for the Respondent(s) No. 2,3 MR UTKARSH SHARMA, AGP ADVANCE COPY SERVED TO GOVERNMENT PLEADER/PP for the Respondent(s) No. 1 ========================================================== CORAM:HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE Date : 13/04/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA)

Rule returnable forthwith. Mr. Utkarsh Sharma, the learned AGP waives service of notice of rule for and on behalf of the respondents.

By this writ-application under Article 226 of the Constitution of India, the writ-applicant has prayed for the following reliefs:- 12(a) Be pleased to issue a writ of certiorari or a writ in the nature of certior

The judgment continues below.

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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.