2023 (3) TMI 680 - HC - GST

Cancellation of the GST registration of petitioner - vague SCN issued - violation of principles of natural justice - HELD THAT:- After having carefully perused all the material documents placed in this appeal, it is found that the show cause notice, which was issued to the appellants is devoid of any material and is absolutely vague. The appellants have not been informed as to what was the alleged fraud and alleged willful mis-statement made by the appellants. The appellants denied the allegations. However, the authority confirmed the proposal of cancellation by a single line order once again without any reason.

When the matter was carried on appeal to the appellate authority, certain fresh facts have been brought in and an elaborate order has been passed by the appellate authority. It is no doubt true that an appellate authority or any administrate or quasi-judicial authority is expected to give detailed reasons to support its conclusion. Nevertheless, the authority has to consider the aspect as to whether the original authority had, at the first instance assigned any reason in support of its conclusion.

On examining the order passed by the original authority, it is found that the same is devoid of any reason. If that be so, the appellate authority ought to have set aside such an order and remanded the matter back to the original authority instead of taking the trouble of trying to validate the order with certain reasons by bringing in fresh facts - the registration granted to the appellants has to be restored.

The appeal and the writ petition are disposed of and the order passed by the appellate authority and the original authority are set aside and the original authority is directed to restore the appellants’ registration of the address at 3rd Floor, 119 Cotton Street, Kolkata – 700 007 within a period of seven days from the date of receipt of the server copy of this judgment and order.