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2023 (6) TMI 888 - MADHYA PRADESH HIGH COURT
Cancellation of GST registration of petitioner - allegation of vague SCN for not supplying the relevant reasons and material while proposing cancellation of registration - denial of reasonable opportunity of defending himself and replying to the show cause notice - violation of principles of natural justice (audi alteram partem).
HELD THAT:- It is evident as day-light that the principle of natural justice (audi alteram partem) has been given a go-bye by the Revenue at the very initial stage of issuance of show cause notice - affording of opportunity of being heard is a precondition for exercising the power of cancellation of registration.
In the present case, the show cause notice did not contain sufficient reasons to enable the assessee-petitioner to file a reply and, therefore, reasonable opportunity of being heard was denied to the petitioner. By saying that the registration has been obtained by fraud/wilful misstatement/suppression of facts, is not sufficient. Such terms need to be supported by reasons as to why, how and under what circumstances the registration was obtained by fraud/wilful misstatement/ suppression of facts. More so, such reasons ought to be supported by at least some fundamental supporting material, which, in the instant case is conspicuously missing - More so, the order of cancellation of registration is also bereft of any reason whatsoever and thus disables the petitioner-assessee from effectively availing the remedy of statutory appeal u/S.107.
This Court profitably refers to the Division Bench decision of Delhi High Court in the case of Balaji Enterprises [2022 (9) TMI 1107 - DELHI HIGH COURT] where the facts and circumstances especially the text of the show cause notice impugned therein were almost similar to the text of the impugned show cause notice herein - it was held in the said case that a plain reading of the order would show, that the petitioner’s registration was cancelled on account of an enquiry pending against the petitioner, which evidently is being carried out by DGGI, Chennai concerning supply of spurious goods.
In the conspectus of aforesaid discussion, this Court has no manner of doubt that the impugned show cause notice dated 28.01.2022 (Annexure P/2) and the consequential order of cancellation of registration dated 11.02.2022 (Annexure P/4), rejection of application for revocation of cancellation of registration dated 30.03.2022 and the appellate order dated 13.06.2022 (Annexure P/9) are vitiated in law for being vague and having been issued in violation of principles of natural justice (audi alteram partem).