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Case Title |
Mahendra Janubhai Zala vs Office Of The Deputy Commissioner, State Tax |
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Court |
Gujarat High Court |
|
Honorable Judges |
Justice Sonia Gokani Justice Mauna M. Bhatt |
|
Citation |
2022 (11) GSTPanacea 464 HC Gujarat R/SPECIAL CIVILAPPLICATION NO. 13597 of 2022 |
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Judgment Date |
25-November-2022 |
The Show cause notice issued for cancellation of registration and consequential order was not sustainable when they were cryptic in nature and were passed without providing the opportunity of a personal hearing.
Therefore, a direction was to be issued to the department for the restoration of registration.
In this case, a Cost of Rs. 25,000 was to be imposed on the department. An appeal against such an order was preferred after four years from the date of issuance of the order, and the same was rejected as time-barred.
The petitioner contended that returns were not filed due to negligence and the death of the accountant, and he was not aware of the SCN uploaded by the department as the same was not reflected in the portal.
The petitioner challenged the validity of a Show Cause Notice (SCN) leading to the cancellation of their registration, as well as the subsequent order, arguing that they were untenable due to their cryptic nature and the absence of a personal hearing opportunity. The petitioner sought a direction for the restoration of their registration.
Furthermore, the petitioner argued that a penalty of Rs. 25,000 should be imposed on the department for their actions. The crux of the argument was the lack of a proper opportunity for the petitioner to present their case, questioning the fairness and validity of the cancellation process.
However, the appeal against the order was rejected on the grounds of being time-barred, having been filed four years after the issuance of the order. Despite this, the petitioner put forth the claim that their failure to file returns was due to negligence and the unfortunate death of their accountant. Additionally, they asserted that they were unaware of the Show Cause Notice uploaded by the department, as it was not reflected in the portal.
In summary, the petitioner contended that the cancellation of their registration lacked procedural fairness and was based on factors beyond their control, such as the death of their accountant. They sought the restoration of registration and argued for the imposition of a penalty on the department. The rejection of their appeal was attributed to the claim being time-barred, a point that the petitioner contested.
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