TaxTMI 
TaxTMI 
2023 (9) TMI 1176
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....oner interalia raised a contention that the show cause notice does not furnish any reason whatsoever and more particularly when serious allegation of a fraud, willful misstatement or suppression of facts was being made against the petitioner. On such show cause notice, it appears that the Designated Officer / Superintendent proceeded to pass the impugned order dated 11th November 2022, by which the registration of the petitioner has been cancelled which is the second challenge as mounted by the petitioner. 3. The contention of the petitioner is that the impugned order does not furnish any reason whatsoever to cancel the registration of the petitioner and more particularly when the registration stands cancelled retrospectively with effect from 26th November 2022. On the above backdrop the present petition has been filed praying for the following reliefs: - "(a) that this Hon'ble Court be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction calling for the records pertaining to the petitioner's case and after going into the validity and legality thereof, be pleased to quash and set aside the impugned....
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....gard to several transactions which has been set out in paragraphs 9 to 11 of the reply affidavit. It is submitted that the Respondent-revenue is justifying the impugned order by furnishing reasons for the first time, in the reply affidavit as such materials did not form part of the show cause notice. It is thus submitted that the impugned order on such count is itself ex facie illegal as in law the impugned order cannot be justified by furnishing reasons in the reply affidavit and that too for the first time in the present proceedings. It is hence submitted that the impugned order be quashed and set aside. 5. On the other hand, Mr.Subir Kumar, learned counsel for the respondents has sought to justify the show cause notice as also the impugned order passed thereon. He has placed reliance on the reply affidavit filed by Mr.Neeraj Kansal, Assistant Commissioner Anti Evasion, CGST & C.Excise, Raigad Commissionerate. He submits that in the reply affidavit, the deponent has set out the details of the information which was revealed in the investigation in regard to fake Input Tax Credit (ITC). Referring to the reply affdiavit it is submitted that the petitioner had fraudulently availed....
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....ny reasons whatsoever which the law would recognize to justify cancellation of the registration of the petitioner. The impugned order is being passed mechanically and without application of mind is clearly seen on a bare reading of the impugned order which reads thus : - Order for Cancellation of Registration "This has reference to your reply dated 31/07/2022 in response to the notice to show cause dated 27/07/2022. Whereas the undersigned has examined your reply and submissions made at the time of hearing, and is of the opinion that your registration is liable to be cancelled for following reason(s). 1. In terms of Section 29 (3) & (4) of the CGST Act, 2017, the cancellation of registration shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. The effective date of cancellation of your registration is 26/11/2020. Determination of amount payable pursuant to cancellation : Accord....
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.... officer should have been more careful and could not have been so careless in issuing such defective show cause notice. The impugned action in issuing such show cause notice and passing of the impugned order thereon, has in fact proved counter-productive to the interest of revenue, if the department is correct in its case as put up in the reply affidavit for the first time. The concerned Commissionerate needs to take a serious view of such approach of the concerned Officers who are not following the law in issuing appropriate show cause notices more particularly when the issues are serious. Such deviation by the concerned officers from deviating from following the well settled norms and procedure, in fact would benefit an assessee if there is material that he has committed illegalities. 12. In the present case, the manner in which the show cause notice is issued and the impugned order is passed, would only assist the petitioner as it appears that the respondents had materials which could have formed the basis of the show cause notice, but the same was not informed to the petitioner and / or no attempt was made to remove the defect in the show cause notice, for reasons best known....