Mere recital of statutory requirement not sufficient for valid Show Cause Notice

The Allahabad High Court, in the matter of Vimal Kumar Vs. Union of India And Another, has issued an order that Mere recital of statutory requirements is not sufficient for a valid Show Cause Notice.

Essential Points about the Judgment:

Heard Sri Praveen Kumar, learned counsel for the petitioner, Sri Gaurav Mahajan, learned counsel for the respondent no.2, Sri Anant Kumar Tiwari, learned counsel for the Union.

Challenge has been raised to the order dated 3.5.2022 passed by the Superintendent, Sector-1, Range-4, CGST Commissionerate, Gautam Budh Nagar. By that order the respondent no.2 has cancelled the petitioner’s registration under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as ‘the Act’).

Having heard learned counsel for the parties and having perused the records, it remains undisputed that originally the petitioner was granted registration under the Act with respect to the place of business disclosed in that registration. At the same time, on 4.8.2022 the petitioner was issued a show-cause notice seeking to cancel petitioner’s registration. It reads as below:

A reply thereto appears to have been received on record on 17.4.2022. However, learned counsel for the petitioner would contend no such reply came to be furnished. It is the further case of the petitioner, no proceeding was conducted over a long period of nine months. Yet, without any further notice, on 3.5.2023 the impugned order was passed and the petitioner’s registration cancelled retrospectively. Perusal of the order revels that the petitioner’s registration was cancelled for reason of non existence of the principal place of business. For ready reference the contents of the order dated 3.5.2023 are quoted below:

As to the relief, since the suspension of registration has survived for more than a year, we decline any interference with the show-cause notice. At the same time, we provide that the petitioner may treat the impugned order to be the show-cause notice and file his reply thereto within a period of two weeks. Subject to such compliance the respondent may fix a proper date for hearing with fourteen days notice and pass a reasoned and speaking order. The rights of the parties shall abide by the order to be passed by respondent no.2 in compliance of this order.

The writ petition stands disposed of. There shall be no order as to costs.

For Official Judgment Download the PDF Given Below: