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2022 (12) TMI 852
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....uash and set aside the order dated 03.08.2022, by which the GST Registration of the petitioner is cancelled and to restore the GST Registration forthwith. It is also prayed that the respondents herein be restrained to carry out investigations since the investigation by Directorate General of GST Intelligence (for short "DGGI") is already pending. 2. The facts in brief are as under: 1. The petitioner is engaged in manufacturing of copper wire from the copper scrap and was registered under the State Goods and Services Tax, 2017 (hereinafter referred to as "the Act, 2017") on 09.08.2018. 2. Pursuant to issuance of registration certificate, the petitioner was regularly filing monthly and quarterly returns and following the ....
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....ed a communication dated 24.11.2021, calling upon the petitioner to appear in-person on 26.11.2021. As the petitioner was unavailable, request was made for an adjournment. 11. The petitioner filed detailed reply dated 03.12.2021, and also preferred an appeal under Section 107 of the Act before Commissioner (Appeals), challenging the order dated 26.10.2021. 12. The Commissioner (Appeals) vide order dated 09.05.2022, allowed the appeal with directions to respondents to activate the Registration Number of the petitioner. 13. Pursuant to the order of Commissioner (Appeals) dated 09.05.2022, an order dated 12.05.2022 was passed by respondent No.3, restoring registration. 14. Another show-cause notice dated 17.....
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....issue involved and with the consent of the learned advocates for the respective parties, present petition is taken up for final hearing. 4. Appearing for the petitioner, learned advocate Mr. A.S. Mishra made following submissions: 4.1 There is no provision under the GST Act which permits respondents to initiate proceedings for cancellation of registration second time and therefore, the order dated 03.08.2022 is ex-facie illegal and without jurisdiction. 4.2 The show-cause notice dated 17.05.2022 proposing to cancel the registration is bereft of any reasons, and therefore, it is in clear violations of principles of natural justice. In support of his submissions, he relied upon the decision of this Court in case of Aggarwal Dyeing an....
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....ged. In relation to merits, he submitted that the petitioner has availed Input Tax Credit (ITC) wrongfully on the basis of purchases made from bogus firms whose registration have been canceled ab-initio, and therefore, as petitioner failed in providing the details as called for, the order dated 03.08.2022 was passed and there is no illegality. He, submitted that no interference in the order is required and the petition deserves to be dismissed. 6. Having heard learned advocates for the respective parties, we would like to reiterate certain facts. The first show-cause notice dated 28.09.2021, proposing cancellation of registration reads as under: "Whereas on the basis of information which has come to my notice, it appears that yo....
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....cting the respondents to activate the Registration Number of the petitioner. The contention of the respondents that since the Commissioner (Appeals) in the order dated 09.05.2022, has observed that in the interest of justice, the petitioner has to been given one chance, the respondents initiated suo-moto proceedings for cancellation of registration, to which we could not see any justification particularly when no such liberty was granted by the Commissioner(Appeals), and the order of cancellation of registration dated 26.10.2012, merges with the order of Commissioner (Appeals). In our opinion, it would be very apt to reproduce the show-cause notice dated 17.05.2022 under which the proceedings for cancellation of registration has been ini....
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....e that as it may, however, in our opinion, the show-cause notice dated 17.05.2022 is bereft of any reasons, and therefore, the same is vague. This Court in case of Aggarwal Dyeing (Supra) and thereafter, in series of decisions has reiterated that the reasons are heart and soul of the order and non-communication of the same itself amounts to denial of reasonable opportunity of hearing resulting into miscarriage of justice. Applying the same principle, in our opinion, the show-cause notice dated 17.05.2022 being without any reason, the same is bad in law and deserves to be quashed and set aside and hereby quashed and set aside accordingly. The order dated 03.08.2022, of cancellation of registration is also quashed and set- aside. The responde....