2024 (7) TMI 987 - HC - GST

GST Notices Canceled: Violation of Natural Justice; Detailed Re-Issuance Required for Fair Hearings.

The HC quashed the show cause notices and cancellation orders under the GST Act due to a violation of natural justice principles, emphasizing the need for ... Cancellation of registration of petitioner - order was passed without assigning any reasons for cancellation of registration of the petitioner - violation of principles of natural justice - HELD THAT:- The Co-ordinate Bench of this Court in case of AGGARWAL DYEING AND PRINTING WORKS VERSUS STATE OF GUJARAT & 2 OTHER (S) [2022 (4) TMI 864 - GUJARAT HIGH COURT] has issued the guidelines to the respondent-authorities holding that 'all the writ applications deserve to be allowed solely on the ground of violation of principles of natural justice and, accordingly, the writ applications are allowed.' Petition disposed off by way of remand. Issues:Challenge to show cause notice, cancellation of registration under GST Act, order of appellate authority on ground of limitation, lack of reasons for cancellation of registration.Analysis:The petitioner challenged a show cause notice, cancellation of registration under the GST Act, and the appellate authority's order upholding the cancellation on grounds of limitation. The petitioner contended that the cancellation order lacked reasons. Referring to a previous case, the court outlined guidelines for authorities, emphasizing the need for detailed show cause notices and final orders to avoid surprises for dealers. The court allowed all writ applications due to a violation of natural justice principles, quashing the show cause notices and cancellation orders, and remanding the matter for fresh notices with reasons, providing a hearing opportunity and passing speaking orders on merits. The court clarified that it did not delve into the case's merits and directed the respondent authority to act in accordance with the law. The petition was disposed of with the mentioned directions.