TMI Blog2022 (1) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudication proceedings for the mandatory compliance of the principles of natural justice . Show cause notice is a mandatory requirement for raising any demand under the Act, 2017 except payment of interest u/s 50 and assessment of non filer of returns u/s 62 of the act. The SCN is the foundation on which the adjudicating authority has to build up its case. It is the document served on the taxable person asking him to explain with reason as to why a particular course of action should not be taken against him. It must be a speaking and well reasoned document - The allegations and findings in the SCN should be supported by some documentary evidences. The impugned order, cancelling the registration is hereby quashed and set aside - as the order, cancelling the registration on the ground of vague show-cause notice bereft of any material particulars, is set aside, it is left open to the authority to issue a fresh show-cause notice, if it intends to - Application allowed. - R/Special Civil Application No. 19176 of 2021 - - - Dated:- 6-1-2022 - Honourable Mr. Justice J.B.Pardiwala And Honourable Ms. Justice Nisha M. Thakore For the Petitioner(s) : Kuntal A Parikh Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the premises of the writ applicant was searched by the Asst. Commissioner of DGGI (Directorate General of Goods Services Tax Intelligence), Ahmedabad. In the course of the search, the officer seized various documents like purchase invoices, ledger copies etc. It appears that, thereafter, the respondent No.2 issued a show-cause notice in the Form GSTREG-17/31 [Rule 22(1)] of the Rules, which reads thus; Reference Number:ZA241021046852Z Date:11.10.2021 To, Registration Number (GSTIN/Unique ID):24AHZPJ6810B/ZD Vageesh Jaiswal B-2, Puspak Estate, Gujarat Bottling Road, Rakhial, Ahmedabad, Gujarat, 380023. Show cause notice for Cancellation of Registration Whereas on the basis of information which has come to my notice, It appears that your registration is liable to be cancelled for the following reasons; 1. Issue any invoice or bill without supply of goods and/or service in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax. You are hereby directed to furnish a reply to the notice within seven working days from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was issued for which period to substantiate the claim of proof of delivery of goods by sales made by us. I also urge that my number has been suspended without providing the base and information pertaining to which year hence; I request to activate my number as suspension of the number leads to hardship for deliver the goods as on date and affecting to my business transaction. We shall be glad to furnish further information or explanation, if any. For, All Metals Vageesh Jaiswal, (Proprietor) Enclosure:- 01. Medical report of my sister; 02. My travel tickets from Ahmedabad to Mumbai with my spouse and Travel ticket from Mumbai to Kolkata and Kolkata to Ahmedabad. 2.3 In the reply to the show-cause notice, the writ applicant brought to the notice of the Commercial Tax Officer that the show-cause notice was as vague as anything as no details of the name of the supplier etc. had been furnished. 2.4 The Commercial Tax Officer proceeded to pass the final order, cancelling the registration in the form GSTREG- 19 dated 15th November, 2021. The same reads thus; FORM GST REG-19 [See Rule 22(3)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancelling the Registration, the writ applicant is here before this Court with the present writ application. 3. We have heard Mr. Mihir Joshi, the leaned senior counsel assisted by Mr. Kuntal Parikh, the learned counsel appearing for the writ applicant and Mr. Utkarsh Sharma, the learned AGP appearing for the State-respondents. 4. This litigation has really disappointed us and that too at the end of a tiring day. We are disappointed for two reasons; first the mode and manner in which the entire exercise has been undertaken by the Commercial Tax Officer in cancelling the registration and secondly the vehemence with which the learned AGP has opposed this writ application despite serious shortcomings in the impugned action. When we pointed out to the learned AGP that the show-cause notice is as vague as anything, the learned AGP very vehemently maintained that the show-cause notice contains the minutest of the details on the basis of which the writ applicant could have given a proper and effective reply. The first thing we take notice of is that there are no reasons assigned in the show-cause notice. What has been done is mere incorporation of the provisions of Rule 21(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to build up its case. It is the document served on the taxable person asking him to explain with reason as to why a particular course of action should not be taken against him. It must be a speaking and well reasoned document. The issue of SCN is not only to make aware the taxable person against whom the action is intended to be taken but must contain brief facts of case and grounds relied upon for the proposed action and language in precision, the reading of which makes the person concerned understand the case that he has to defend. It should not be issued on assumptions and presumptions. The allegations and findings in the SCN should be supported by some documentary evidences. 9. The Supreme Court, in the case of Commissioner of C.Ex., Banglore vs. Brindavan Beverages (P) Ltd. , Civil Appeal Nos. 3417-3425 of 2002 decided on 15.06.2007, has observed as under; The show cause notice is the foundation on which the department has to build up its case. If the allegations in the show cause notice are not specific and are on the contrary vague, lack details and/or unintelligible that is sufficient to hold that the noticee was not given proper opportunity to meet the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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