TMI Blog2022 (12) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... ssuing Ext.P1 order is clearly without jurisdiction. If the Officer wishes to initiate proceedings for cancellation of registration, he must issue a notice as specified in Rule 21 of the CGST Rules and in form GST REG-17 and not in form GST REG-31. The Division Bench of the Gujarat High Court in AGGARWAL DYEING AND PRINTING WORKS VERSUS STATE OF GUJARAT 2 OTHER (S) [ 2022 (4) TMI 864 - GUJARAT HIGH COURT] has considered an almost identical situation. The Court considered the contents of the show cause notice issued in that case and came to the conclusion that the show cause notice was woefully inadequate inasmuch as it did not specify the reasons which compelled the Officer to initiate action for cancellation of registration. The S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise of jurisdiction under Section 29 of those enactments. 2. The facts necessary for an adjudication of the issue raised may be briefly noticed. The petitioner suffered Exhibit P1 order cancelling the registration granted under the CGST/SGST Acts. Ext P.1 was issued on 04-04-2022. Though Ext.P.1 appears to have been preceded by a show cause notice issued electronically, the petitioner has a case that the show cause notice never came to his attention. On coming to know of the order cancelling the registration, the petitioner applied for revocation, which application was rejected by Ext.P3, finding that the application for revocation was beyond the time prescribed under Section 30 of the CGST/SGST Acts. The petitioner has therefore filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Printing v. State of Gujarat (Judgment dated 24.2.2022 in Special Civil Application No. 18860/2021 and connected cases) as also the judgment of the same Court in Sing Traders v. State of Gujarat (Judgment dated 6.4.2022 in Special Civil Application No. 6315/2022) to contend that where the show cause notice is vague and where the order of cancellation also does not specify the factors which lead to the cancellation of registration, the entire proceedings must be held bad in law. He submits that the delay in filing returns and payment of tax for the period of default was not wilful and was on account of severe financial stress. 4. Adv. Thushara James, the learned Senior Government Pleader appearing for the respondents, would refer to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of India [Judgment dated 25.4.2022 in W.P No. 11498 of 2021] to contend that this Court should not interfere with the order cancelling the registration of the petitioner as there is no error of jurisdiction. 5. Having heard the learned Senior Counsel for the petitioner and the learned Senior Government Pleader and Adv.Alfred, learned counsel appearing for the 2nd respondent, I am of the view that the petitioner is entitled to succeed. The reasons which compel me to take such a view are the following: - (i) Ext.P5 show cause notice issued to the petitioner has been issued in Form GST REG-31. That form is to be issued in relation to proceedings for suspension of registration and is issued with reference to Rule 21A of the CGST/SGST R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . These cases were considered by a three-Judge Bench of this Court in State of U.P. v. Singhara Singh [AIR 1964 SC 358 : (1964) 1 SCWR 57] and the rule laid down in Nazir Ahmad case [(1936) 63 IA 372 : AIR 1936 PC 253] was again upheld. This rule has since been applied to the exercise of jurisdiction by courts and has also been recognised as a salutary principle of administrative law. Therefore, the action taken by the officer by initiating proceedings in form GST REG-31 of the CGST Rules and completing the proceedings for cancellation of registration by issuing Ext.P1 order is clearly without jurisdiction. If the Officer wishes to initiate proceedings for cancellation of registration, he must issue a notice as specified in Rule 21 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Karnataka High Court and the Madhya Pradesh High Court relied on by the learned Senior Government Pleader appear to have been handed down in completely different fact situations. I am also not inclined to follow the law laid down by the Court in those judgments; (iii) The contention taken by the learned Government Pleader that since the Court deals with fiscal legislations, the law must be strictly interpreted in favour of the revenue is not a principle that applies to the situation that this Court is concerned. The Constitution Bench of the Supreme Court in Commissioner of Customs (Import), Mumbai v. Dilip Kumar and Company and others; (2018) 9 SCC 1; held that provisions of a taxing statute have to be strictly construed in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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