The Gujarat High Court (HC) held that the application for revocation of cancellation of GST registration without stating the reason is cryptic.
Arsh Traders, the petitioner challenged the action of the respondent – Authority of cancelling the registration and also rejecting of application for revocation of cancellation under the Gujarat Goods and Service Tax Act, 2017.
The petitioner is a proprietary concern dealing in all types of scrap. Show cause notice was issued on 24.06.2019 by the respondent regarding the cancellation of registration on the ground that it has been obtained using fraud and willful mistake and by suppression of facts. The petitioner was directed to appear without any physical notice being received and as the petitioner is not techno-savvy.
The respondent cancelled the registration of the petitioner without making any mention or reason for cancellation. The application for revocation of cancelled registration was subjective in nature and it had been rejected considering the number of transactions and also the parties from which the bogus billing transactions were entered into by the petitioner.
It was also submitted that the application of the petitioner for revocation was approved because of a technical glitch in the portal. It was based on details furnished that the Additional Tax Commissioner, Surat approved the application and a fresh show cause notice for cancellation on a
Justice Sonia Gokani and Justice Sandeep N Bhatt noticed that no procedure had been followed by the proper officer and had not chosen to issue any notice to show cause indicating his intention of rejection.
It was observed that certain statutory rules, which provided the prescribed limit, were disregarded and the Court acceded to the request of hearing the matter from the stage where it was left by giving the timeline for those stages to be completed.
The respondent was granted liberty to initiate the action by giving a detailed fresh show-cause notice within two (02) weeks from the receipt of a copy of this order.
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