Gujarat High Court Quashes Cancellation Order of GST Registration Due to Vague Notice

CASE LAW: SONA METALS VERSUS STATE OF GUJARAT

The Gujarat High Court declared the order cancelling the GST registration as unsustainable in law and set it aside. The court emphasized that the cancellation was based on a vague show cause notice, which prevented the petitioner from providing a proper response. The court referred to previous cases and concluded that such notices are not valid grounds for cancellation.

Here is a summary of the case:

• The petitioner is registered under the Gujarat Goods & Service Tax, 2017 (GST Act). The respondent authorities issued a show-cause notice on 06.01.2023 to the petitioner, alleging fraud, wilful misstatement, or suppression of facts in obtaining registration.
• The show-cause notice does not provide specific details about the alleged misconduct. The notice directs the petitioner to furnish a reply within seven working days and appear for a personal hearing.
• Failure to respond or appear may result in an ex-prate decision based on available records.
• The petitioner argues that they did not receive any physical notice or document at their registered business address.
• The court notes that the show-cause notice is vague and does not enable the petitioner to respond adequately. The court concludes that the present show-cause notice should be quashed and set aside.

Conclusion:

The cancellation of the petitioner’s registration based on the vague show-cause notice is unsustainable. The court allows the writ petition, quashing the show-cause notice and cancellation order.

This Article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update etc. if any.

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