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2023 (7) TMI 911
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....It needs to be observed that the show cause notice itself, was bereft of particulars. It had no description on any details of the allegations. A perusal of the show cause notice itself would indicate that the well-settled norms of fairness and reasonableness were bypassed, in what can be termed as a vague and ambiguous show cause notice. We also note that the show cause notice itself records that the registration of the petitioner is being suspended from 5 January 2021 (from the date of the show cause notice itself). The show cause notice reads thus: "1. In case, Registration has been obtained by means of fraud, wilful misstatement or suppression of facts. Your are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice. Your are hereby directed to appear before the undersigned on 06/01/2021 at 03:25 PM If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits. Please note that your registration stands suspended with effect from ....
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.... cause notice. If on oral instructions such actions are to be resorted, it is nothing short of the concerned officer acting, as if there is no rule of law. In our opinion, there cannot be more vagueness, ambiguity leading to arbitrariness than what has been actually recorded in the order cancelling the petitioner's registration. 6. In the aforesaid circumstances, and obviously confronted with such order, the petitioner through its advocate addressed a letter dated 9 March 2021 to the Assistant Commissioner of State Tax, requesting that the petitioner be furnished with documents on the basis of which the registration certificate has been cancelled. Such letter categorically referred that the order cancelling petitioners registration had recorded that it has been cancelled pursuant to the instructions from the authorities. The petitioner called upon the said officer to provide copies of all such materials, record, documents, panchanama, copy of statement recorded of employee of company etc., on the basis of which it was informed to the petitioner that the petitioner was not a non-genuine taxable person. Such request of the petitioner being not responded, the petitioner approached ....
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....c. The TP has failed to submit any books of accounts either in the physical form or in the electronic form which were also not available in the registered place of business. The effective date of cancellation of your registration is 01.07.2017." 7. It is clearly seen that there is no discussion in the above order as to why and on what material the said officer had reached to the conclusion and/or the basis forming such opinion. There is no material on record to show that any document in regard to the investigation carried out by the office of the Assistant Commissioner was provided to the petitioner, which is one of the grounds for cancellation of the registration, that the petitioner had utilized more Input Tax Credit (ITC) in GSTR 3B than what was available in GSTR 2A. In fact there was not the slightest of reference of any such allegations in the show cause notice. The second ground on which the registration is cancelled was referring to report submitted by the State GST Authority, and which had certain discrepancies as set out in paragraphs 2(a) (b) (c) of the order as noted above. The petitioner was never confronted / supplied any material in this regard. Also for ....
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.... documents. registers or any books of account shall be presumed to be maintained by the said registered person." 10. This apart there is quite casualness in the appellate authority discharging its statutory jurisdiction, inasmuch as the documents as submitted by the petitioner as permitted to be submitted by orders dated 6 January 2022 passed by the Division Bench of this Court are not bothered to be referred, much less discussed or any reasons attributed on these documents, in recording a blanket conclusion as set out in paragraph 13(D) of the impugned order, that the company was found non-existent and no books of accounts, physical or electronic form, were found maintained at the principal place of business. As pointed out on behalf of the petitioner all the necessary books which were available with the petitioner were submitted, which we have noted above. There is not a whisper of reference to such material in the impugned order passed by the appellate authority. This apart even in regard to the premises of the petitioner, the petitioner had furnished documents and reasons on the rental agreement it had with the sister concern M/s. Kayavlon Impex Pvt. Ltd. The appellate autho....
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....cers to act in accordance with law. Such officers in their public position wield drastic powers which are conferred on them by law, however such powers are coupled with a onerous duty and obligation to be exercised strictly in accordance with law and in no other manner, much less recklessly. As observed above, each of these officers have deviated in adhering to such basic principles in the jurisdiction which they were empowered to exercise as conferred by law. In fact on the edifice of a patently illegal show cause notice, the consequence of which appeared to be predetermined, the first authority proceeded to pass an order against the petitioner cancelling its registration. If the elementary principles of law of adherence to the principles of natural justice, in regard to issuance and adjudication of show cause notices are not being followed by such authorities, the fate of the citizens at the hands of the authorities, is just to be imagined. This is one case which in our opinion is an eye opener. Certainly, the orders passed by these authorities have resulted in civil consequences. It has directly affected the rights of the petitioner guaranteed under Articles 19(1) (g) and 300A o....