2024 (10) TMI 270

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....ran, learned Assistant Government Pleader representing Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, for the respondents. 2. With the consent, finally heard. 3. The singular pivotal question before us is whether the show cause notice for cancellation of registration and action of suspending the registration by order dated 27.01.2024 is justifiable and proper or not. 4. The learned counsel for the petitioner advanced singular point by contending that only so-called 'reason' shown in the impugned show-cause notice dated 27.01.2024 is mere reproduction of language of Section 29 (2) (e) of the Central Goods and Service Tax Act, 2017 and does not contain necessary details on the strength of which such a 'conclus....

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.... and held as under: "9. We find subsistence in the argument of the learned counsel for the petitioner that the factual backdrop or the reason on the strength of which, conclusion of fraud or misstatement or suppression of facts was drawn is totally absent in the show cause notice. The show cause notice, in our considered opinion, should spell out the factual backdrop of breach, on the strength of which the department has rejected and concluded that Section 29 (2) (e) of the Act, can be invoked. If minimum factual backdrop and nature of breach is not mentioned with accuracy and precision, the petitioner was not in a position to file reply. 10. The Apex Court expressed the need of issuance of such notice in Canara Bank vs. D....

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.... 311 (Telangana)/[W.P. No.1596 of 2024, dated 23-1-2024] and S.B. Traders vs. The Superintendent [2022] 145 taxmann.com 556/[2023] 96 GST 13/69 GSTL 175 (Telangana)/[W.P. Nos. 39498 and 39502 of 2022, dated 28-10-2022], interfered with the impugned proceedings and order therein because the reasons were not mentioned while initiating proceedings against the petitioners therein. 13. Needless to mention that the show cause notice dated 09.11.2023 became the foundation for issuance of orders dated 29.11.2023 and 23.02.2024, since the foundation cannot sustain judicial scrutiny, the entire edifice of orders passed thereupon are liable to be jettisoned". (Emphasis Supplied) 8. Since the impugned show-cause notice and suspensi....