2021 (2) TMI 1046

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....d on the following questions of law: A. Whether the order of cancellation cancelling the assessee's registration could have been made and sustained by the appellate authority and the Tribunal on grounds different from those disclosed in the show cause notice? B. Whether in registration of the assessee could have been cancelled with retrospective effect? 3. Briefly, the admitted facts of the case are that the assessee was registered under the U.P. Value Added Tax Act, 2008 (hereinafter fererred to as the Act), under Section 17 (11) of the Act. A show cause notice was issued to the assessee by the Assistant Commissioner proposing to cancel its registration. Perusal of the notice reveals that it was issued on three poi....

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....unity of hearing is a mandatory condition to be fulfilled before any registration may be cancelled. For an adequate opportunity of hearing, it is necessary that the assessee be confronted with the exact charge levelled against him and also with the adverse material relied against him. Neither the exact charge was disclosed to the assessee vide notice dated 24.10.2016 nor the adverse material was disclosed to the assessee. Referring to the order dated 18.11.2016, it has been submitted that it for the first time disclosed the names of the other dealers M/S Shiva Traders & Contractors, M/S Ashoka Elignce Amantran, M/S A.K. Contraction Company and M/S Mithlesh Enterprises with whom the assessee is alleged to have performed bogus transactions. ....

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....and bogus transitions. Neither the show cause notice disclosed the exact nature of such transactions, nor the volume of such transactions nor the name of the dealer with whom asseessee is alleged to have traded in goods after cancellation of the registration of the other dealers or after closure of business by the other dealer. Unless the aforesaid facts were clearly adverted to in that notice and unless the adverse material relied against the assessee had been disclosed to him, the same could not have been read against him, in evidence. 11. In absence of such disclosure contained in the show cause notice dated 24.10.2016, it is difficult to contemplate how a person in the shoes of present assessee could have responded to the show cause ....