Case Title | Aggarwal Dyeing and Printing Works vs State of Gujarat and Ors |
Court | Gujarat High Court |
Honorable Judges | Justice J.B Pardiwala and Nisha M. Thakore |
Citation | 2022 (2) GSTPanacea 144 HC Gujarat R/SPECIAL CIVIL APPLICATION NO. 18860 of 2021 |
Judgement Date | 24-February-2022 |
Council for Petitioner | Mr. Natasha Sutaria |
Council for Respondent | Mr. P Baruah |
In favour of | Petitioner |
Section | Section 29 and 30 of the CGST Act, 2017 |
The Gujarati High Court, Ahmedabad bench of Justice J.B Pardiwala and Nisha M.Thakore, has held that, Show Cause Notice for Cancellation of GST Registration being vague can’t be valid.
FACTS OF THE CASE
The writ applicant is a sole proprietary concern and is engaged in the business of manufacturing of dyeing and printing fabrics. The writ applicant was a registered dealer holding GSTIN with effect from 04.08.2017. The copy of such registration certificate in the Form GST REG-06, dated 16.02.2018 has been placed on record. The writ applicant claims to be a regular tax payer. On 18.09.2018, the writ applicant was served with a notice calling upon to reply as to why the registration should not be cancelled for the reason that the writ applicant had not filed his returns for a continuous period of six months. The writ applicant was asked to furnish his reply and hearing was fixed on 27.09.2018. The writ applicant, however, failed to submit his reply and on 30.09.2018, the Assistant Commissioner, passed an ex-parte order of cancellation of registration with effect from it’s date of registration ie. 04.08.2017.
COURT HELD
Gujarat HC held that “We take notice of the fact that the SCN at page: 19 (Annexure: B) is as vague as anything. The order cancelling the registration is at page: 20 is more vague than the SCN.” “The impugned order is not only non-speaking, but cryptic in nature, and the reason of cancellation is not decipherable therefrom. Thus, the basic principles of natural justice are violated and therefore, the impugned order needs to be quashed.”
ANALYSIS OF THE JUDGEMENT
Thus, the position of law that emerges from the decisions mentioned above, is that assignment of reasons is imperative in nature and the speaking order doctrine mandates assigning the reason which is the heart and soul of the decision and said reasons must be the result of independent re-appreciation of evidence adduced and documents produced in the case.
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Aggarwal Dyeing and Printing Works
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