Show cause notice and/or Order for cancellation of GST registration should be clear and specific.

cancellation of GST registration

Case Title

DBS Tradelink and Advisors Pvt Ltd. Vs State of Maharashtra and anr.

Sections

Section 30

Court

Bombay High Court

Honorable Judges

Justice. Md. Nizamuddin

Citation

2022 (7) GSTPanacea 202 HC Bombay

W.P.No.8474 of 2022

Judgement Date

20-July-2022

Counsel for Petitioner

Prakash Shah i/by M/s PDS Legal

Counsel for Respondents

Ms S.D.Vyas

Decision

In the favour of Assesee

The Bombay High Court bench of Justice Md. Nizamuddin has held that since GSTN is not equipped with creating system generated documents, and notices, orders should be passed in physical form instead of digital till it is resolved.  

FACTS OF THE CASE

The Petitioner is served with a digital show cause notice vide Form GST REG-17 on dated 21.04.2022 which was incomprehensible. SCN had unclear statements and bear signature which is not verified. However registration number was suspended with immediate effect. Similarly on 05.07.2022 impugned order in form no GST REG-19 of cancellation of GST registration number with GST payable as zero was issued.

The respondent informed Hon. Court that the said notice and orders passed were system generated documents. And that accelerated efforts were being made to fix and resolve GST Network problem.

The Counsel for petitioner has made reference to order of Gujarat High Court in the case of  Aggarwal Dyeing and Printing Works Vs state of Gujarat and others, dated 24th February 2022. In the said order Hon. Gujarat High Court had directed GST department to issue notices and pass orders in physical form with necessary particulars instead of digital form till the GST Network problem is resolved. 

cancellation of GST registration

COURT HELD

Considering the facts as recorded, Hon. Court quashed and set aside SCN dated 21.04.2022 and impugned order dated 05.07.2022 of respondent. Respondents were directed to proceed in accordance with law to issue notices and pass orders in physical form instead of digital form till the GST Network problem is resolved.

cancellation of GST registration

ANALYSIS OF THE JUDGEMENT

Show cause notices and orders should not be ambiguous and self-contradictory.

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DBS Tradelink and Advisors Pvt Ltd.

For Reference Visit:

Bombay High Court