TMI Blog2022 (4) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... ecuniary consequences. The Appellate authority ought to have appreciated that the writ applicants at relevant point of time i.e. in year 2017, applied for registration which request was favourably considered by the authorities under the Act with a specific registration number allotted to the writ applicant. It was a transitional phase, whereby the old CST Act was repealed and the new regime of CGST/ GGST has come into force - Unfortunately, information of the returns for certain period not being uploaded, surfaced in the year 2019 and the cause explained suggest that circumstances were beyond the writ applicant's reach. In such peculiar circumstances, it was least expected of the Appellate authority to condone the delay for filing appeal, more so, with the Onset of Pandemic Covid-19, preventing further follow up action. In the peculiar facts and circumstances, the authority ought to have condoned the delay which unfortunately was not done, despite the writ applicant having made a fervent request for condonation of delay in filing appeal seeking revocation of cancellation of registration. On account of procedural lapses, the High Court should not be flooded with writ appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on no. 24AEXPA3306C1ZZ, under the provisions of the Gujarat Goods and Service Tax Act, 2017 (for short the Act, 2017 ) with effect from 04.08.2017. The copy of such registration certificate in the Form GST REG-06, dated 16.02.2018 has been placed on record. The writ applicant claims to be a regular tax payer. 4.2 On 18.09.2018, the writ applicant was served with a show cause notice issued by respondent no.3 calling upon to reply as to why the registration should not be cancelled for the reason that the writ applicant had not filed his returns for a continuous period of six months. The writ applicant was asked to furnish his reply and hearing was fixed on 27.09.2018. 4.3 The writ applicant, however, failed to submit his reply and on 30.09.2018, the Assistant Commissioner, Ghatak 21 (Ahmedabad) passed an ex-parte order of cancellation of registration with effect from it s date of registration ie. 04.08.2017. 4.4 The writ applicant claims to be lacking knowledge of the New tax regime and having learnt about the cancellation of registration, sought the advise of his Chartered Accountant and belatedly filed his returns. The writ applicant has placed on record the returns filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve file returns manually and also paid tax. Application dated 12.09.20 19 seeking revocation pending. Appeal rejected vide order dated 09.07.2021, on ground of delay of 17 months. SCA no. 3140 of 2022 24AAFFTS101Q1Z1 07.07.2018 19.06.2019 Not filing returns for continues period of six months. 27.06.2019 Sought time to file reply however, order passed without providing reasons. Application dt. 29.06.2019, seeking revocation rejected vide order dated 03.08.20 19. Appeal filed on 19.09.2021 explaining delay on account of death of father and Covid-19 pandemic. Rejected vide order dated 07.12.2021. 6. This court while issuing notices in each of these cases had prima facie found that the show cause notice seeking cancellation of the registration issued by the respective Assistant Commissioner/Deputy Commissioner under the said Act, is devoid of any specific details/particulars. Again, pursuant to the such show cause notices what was even more glaring was to note the impugned orders of cancellation of registration. Thus, this Court passed foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue final orders of cancellation of registration. 2. We have been given to understand that the portal is not permitting the concerned officer to insert the material particulars or necessary information to make any show cause notice or any final order, a speaking order or a meaningful order. If the problem is in the portal, then our suggestion is that a show cause notice as well as the final order should be passed on a paper like any other order which any authority or a Court of law passes. Such show cause notice or order should be dispatched at the correct address of the dealer concerned. If this exercise is undertaken, then no dealer will come to the Court complaining that the show cause notice as well as the final order are vague or unintelligible. Mr. Vyas further pointed out that in the portal, some arrangement has been made to indicate an attachment. So, tomorrow, if any dealer comes to know that a show cause notice has been issued or final order has been passed, there is some attachment to the same. Such attachment should go to the registered premises of the dealer in a physical form. 3. Post these matters once again on 24thFebruary 2022. We hope that by 24th Februar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovides deemed registration. The Gujarat Goods and service Rules, 2017 has come into effect from 22nd June, 2017. Chapter III deals with subject Registration . Rule 8 provides for Application for registration. Rule 10 provides for Issue of registration certificate. Rule 16 provides for Suo Moto registration. Section 29 confers power upon the Proper Officer for cancellation of Registration. Section 30 provides for revocation of cancellation of registration. Against the aforesaid substantive provisions prescribed under the Act, the corresponding rules framed thereunder are also required to be looked into. Rule 20 provides for filing of application for cancellation of registration by the dealer. Rule 21 provides for Registration to be cancelled by the proper officer in certain cases. Rule 22 deals for procedure to be adhered while proceeding for with Cancellation of Registration. Rule 23 deals with Revocation of cancellation of registration. 9. In light of the aforesaid provisions, we notice that registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intendent of Central Tax Cancellation of Registration in GST 12 GST FLYERS shall, after conducting such enquiry as deemed fit, cancel the said registration. ii. The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under Central Goods and Services Tax Act. iii. In the event, the Superintendent of Central Tax has reasons to believe that the registration of a person is liable to be cancelled, a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled; will be issued. iv. The reply to the show cause notice issued has to be furnished by the registered person in FORM REG 18 within a period of seven working days. iv. In case the reply to the show cause notice is found to be satisfactory, the Superintendent of Central Tax will drop the proceedings and pass an order in FORM GST REG 20. v. However, when the person who has submitted an application for cancellation of his regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns. iii. On examination of the application if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, then he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant. iv. However, if on examination of the application for revocation, if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is not satisfied then he will issue a notice in FORM GST REG 23 requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG24. v. Upon receipt of the information or clarification in FORM GST REG-24, the Proper Officer (Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Lal Gupta v. Modern Cooperative Grouop Housing Society Limited, (2010) 13 SCC 336; Kranti Associates Private Limited v. Masood Ahmed Khan, (2010) 9 SCC 496; Abdul Ghaffar v. State of Bihar, (2008) 3 SCC 258, has expanded the horizon of natural justice and reasons have been treated part of the natural justice. It has gone to the extent in holding that reasons are heart and soul of the order. The absence of reasons renders an order indefensible/unsustainable particularly when it is subject to appeal/revision. It is to be noted that in the case of Kranti Associates v. Masood Ahmed Khan, (2010) 9 SCC 496, the Hon'ble Supreme Court after considering various judgments formulated certain principles which are set out below: a. In India the judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. b. A quasi-judicial authority must record reasons in support of its conclusions. c. Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well. d. Recording of reasons also operates as a valid res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Article 6 of European Convention of Human Rights which requires, adequate and intelligent reasons must be given for judicial decision. o. In all common law jurisdictions judgments play a vital role in setting up precedents for the future. Therefore, for development of law, requirement of giving reasons for the decision is of the essence and is virtually a part of Due Process . Thus, the position of law that emerges from the decisions mentioned above, is that assignment of reasons is imperative in nature and the speaking order doctrine mandates assigning the reason which is the heart and soul of the decision and said reasons must be the result of independent re-appreciation of evidence adduced and documents produced in the case. 12. At this stage it would be germane to refer to observations made by the Andha Pradesh High Court in the case of MRF Mazdoor Sangh vs. The Commissioner of Labour Others, reported in 2014 (3) ALT 265, MANU/AP/1685/2013, wherein the matter of cancellation of registration of trade union, it was held that : The show cause notice should reflect the jurisdictional facts based on which the final order is proposed to be passed. The pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of this notice. You are hereby directed to appear before the undersigned on 27/09/2018 at 12:42. If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits. Place : Gujarat Signature valid digitally signed by OS Goods and Service Tax Network 1. Date: 2018.09.18 13.00.44 13.1 To say the least, the respondent authority i.e. the Assistant/Deputy Commissioner, State tax Officer ought to have atleast incorporated specific details to the contents of the show cause. Any prudent person would fail to respond to such show cause notice bereft of details thereby making the mechanism of issuing show cause notice a mere formality and an eye wash. 14. We further notice that the respondent authority has failed to extend sufficient opportunity of hearing before passing impugned order, inspite of specific request for adjournment sought for. Even the impugned order is not only non speaking, but cryptic in nature and the reason of cancellation not decipherable therefrom. Thus, on all counts the respondent author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quirements of hearing the appellants or the applicants before dismissing their appeals or applications filed beyond time on principle of natural justice, although the concerned statute does not prescribe such requirement specifically. 15.1 The Appellate authority ought to have appreciated that the writ applicants at relevant point of time i.e. in year 2017, applied for registration which request was favourably considered by the authorities under the Act with a specific registration number allotted to the writ applicant. It was a transitional phase, whereby the old CST Act was repealed and the new regime of CGST/ GGST has come into force. With the different forms and procedure envisaged there under, any layman is bound to take time to adhered to the norms. The Record reveals that subsequently the writ applicants have claim to have filed their returns and have even deposited all dues. We further notice that such exercise has been undertaken through the writ applicant's Tax Consultant who were professionally engaged to undertake such task. Unfortunately, information of the returns for certain period not being uploaded, surfaced in the year 2019 and the cause explained sugg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration that may be passed, the authority concerned shall issue an appropriate show cause notice containing all the necessary details and information in a physical form and forward the same to the dealer by RPAD. In the same manner, when it comes to passing the final order, the same shall also be passed in a physical form containing all the necessary information and particulars and shall be forwarded to the dealer by RPAD. 18.2 Over a period of time, we have noticed in many matters that the impugned order cancelling the registration of a dealer travels beyond the scope of the show cause notice. Many times, the dealer is taken by surprise when he gets to read in the order that the authority has relied upon some inspection report or spot visit report etc. If the authority wants to rely upon any particular piece of evidence then it owes a duty to first bring it to the notice of the dealer so that if the dealer has anything to say in that regard, he may do so. Even if the authority wants to rely on any documentary evidence, the dealer should be first put to the notice of such documentary evidence and only thereafter, it may be looked into. 18.3 The aforesaid may appear to be very ..... X X X X Extracts X X X X X X X X Extracts X X X X
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