TaxTMI 
TaxTMI 
2026 (9) TMI 1897
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Goods and Services Tax Act, 2017 (for short 'GST Act') confirming cancellation of registration certificate of the petitioners as well as the show cause notice dated 10.11.2022 proposing to cancel the registration certificate. 2. At the outset, learned advocate Mr. Uchit N. Sheth, appearing for the petitioners, submitted that the impugned show cause notice as well as the order are required to be quashed and set aside on the ground of violation of principles of natural justice, and the matter is required to be remanded back. Furthermore, he has submitted that the appellate order also travels beyond the show cause notice, and the same also requires to be set aside. 3. The petitioner is a partnership firm and deals with business of sale ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....RC-03. 6. The petitioners again filed an Appeal under Section 107 of the GST Act seeking restoration of registration certificate. It appears that the appellate authority sought report from the jurisdictional officer, which filed a negative report and forwarded to the appellate authority. It is the case of the petitioners that the report of the officer contained new grounds, which were never present in the original show cause notice, as well as the notice rejecting revocation application. 7. The petitioners filed detailed written submissions and contested the Appeal on merits. However, by the impugned order dated 04.05.2024, the appellate authority rejected the Appeal, which has constrained the petitioners to file the writ petition. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 9. In response to the foregoing submissions and opposing the present petition, learned AGP Ms. Tanushree Shrimal has urged that the impugned show cause notice as well as the order may not be quashed and set aside as the same are precisely passed. 9.1 She has submitted that looking to the bogus availment of the ITC, the authorities have cancelled the registration with retrospective effect as it was found from spot verification from the business premises of the petitioners that the same had been closed. She has submitted that upon verification of GSTR-2A details of purchases from cancelled dealers, the petitioners were issued the show cause notice dated 10.11.2022 as to why the registration cannot be cancelled. 9.2 She has submitted t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2, in form GST REG-17/31, which was sent through email, the petitioners were called upon as to why their GST registration cannot be cancelled, as the registration has been obtained "by means of fraud, wilful misstatement or suppression of facts". Thus, the show cause notice specifically mentions that the initial registration of the petitioners has been obtained by means of fraud, wilful misstatement or suppression of facts. The petitioners were directed to appear before the authority on 18.11.2022 at 13:00 hours, and the registration was suspended with effect from the date of issuance of show cause notice, i.e. 10.11.2022. 12. It appears that the petitioners requested 15 to 20 days time to produce documentary evidence such as purchase bi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... application for revocation of cancellation of registration. The respondent authority issued a show cause notice in the rejection of application for revocation of cancellation of registration on 07.03.2023. In the said application, the petitioners were asked to pay tax, interest and penalty in form GST DRC-03. Since the petitioners did not deposit the amount of tax and penalty through form GST DRC-03, the application for revocation of cancellation of registration was rejected by the authority. The order dated 13.04.2023 by which the application was rejected is premised on the ground that the petitioners had made purchases from three dealers who had suo motu cancelled their registration. Unquestionably, the petitioners were never issued show....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... aside. 15. Similarly, the appellate order also suffers from the same infirmity, and the appellate authority has tried to improve upon the original defect which was found in the order dated 22.11.2022, as the petitioners were not granted opportunity to produce the documentary evidence in support of his case. Thus, the respondents on one hand had demanded payment of tax and penalty, whereas simultaneously by passing of the impugned order with retrospective effect, the registration of the petitioners has been cancelled, resulting into complete closure of the business. The petitioners cannot be asked to deposit the penalty and tax through GST DRC-03 which is voluntary, without issuing any show cause notice for disallowing the input tax cred....