TMI Blog2023 (9) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... raised against him so as to meet a case being put up by the department and which was in fact was not informed to the petitioner and/or concealed from the petitioner. The impugned order dated 11th November 2022 cancelling the registration of the petitioner further compounds the illegality as the impugned order also does not furnish any reason whatsoever in cancelling the registration of the petitioner. The impugned order is required to be held to be illegal not only on the ground of the same being in breach of the principles of natural justice but also on the ground of total non-application of mind, as the same is bereft of any reasons whatsoever which the law would recognize to justify cancellation of the registration of the petitioner. The impugned order is being passed mechanically and without application of mind - In the present case, the manner in which the show cause notice is issued and the impugned order is passed, would only assist the petitioner as it appears that the respondents had materials which could have formed the basis of the show cause notice, but the same was not informed to the petitioner and / or no attempt was made to remove the defect in the show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the following reliefs: - (a) that this Hon ble Court be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction calling for the records pertaining to the petitioner s case and after going into the validity and legality thereof, be pleased to quash and set aside the impugned notice dated 27th July 2022 and impugned order dated 11th November 2022; (b) that this Hon ble Court be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of the Constitution of India ordering and directing the Respondents to revoke the cancellation of the Petitioner s GST registration and restore the same with immediate effect; (c) that pending the hearing and final disposal of the petition, this Hon ble Court may be pleased to : i. injunct and/or prohibit the Respondents, its respective servants, officers and/or agents from, in any manner (directly and/or indirectly), proceeding, continuing with, completing or acting in furtherance of the impugned order ; ii. direct the Respondents to revoke the suspension of the Petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Commissioner Anti Evasion, CGST C.Excise, Raigad Commissionerate. He submits that in the reply affidavit, the deponent has set out the details of the information which was revealed in the investigation in regard to fake Input Tax Credit (ITC). Referring to the reply affdiavit it is submitted that the petitioner had fraudulently availed fake ITC of over Rs.13.96 crores from M/s.Sunshine Traders whose registration was cancelled and which entity seemed to have been created for supplying fake ITC to other entities in the cartel, and for mutual benefit. It is therefore submitted that the discretionary relief ought not to be granted in favour of the petitioner because of misconduct of the petitioner as set out in the reply affidavit. 6. We have heard learned Counsel for the parties. We have also perused the record. 7. At the outset, we may observe that there appears to be much substance in the submissions as urged on behalf of the petitioner, that the show cause notice dated 27th July 2022 issued to the petitioner itself was defective, inasmuch as, there was no material whatsoever referred in the show cause notice as to why the petitioner was being labelled of having obtained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. The effective date of cancellation of your registration is 26/11/2020. Determination of amount payable pursuant to cancellation : Accordingly, the amount payable by you and the computation and basis thereof is as follows:- The amounts determined as being payable above are without prejudice to any amount that may be found to be payable you on submission of final return furnished by you. You are required to pay the following amounts on or before failing which the amount will be recovered in accordance with the provisions of the Act and rules made thereunder. 9. For the aforesaid reasons, the impugned order is required to be held to be illegal and a total nullity. It is well settled principles of law that cancellation of registration certainly meets the assessee with a civil consequence. The petitioner s registration could not have been cancelled without any reason, as no reasons were neither set out in the show cause notice nor set out in the impugned order. The show cause no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued and the impugned order is passed, would only assist the petitioner as it appears that the respondents had materials which could have formed the basis of the show cause notice, but the same was not informed to the petitioner and / or no attempt was made to remove the defect in the show cause notice, for reasons best known to the designated officer. 13. In our opinion, if what has been pointed out to us in the reply affidavit if is proved to be correct, then in that event, such enormous time and resources being wasted by the designated officer in issuing a defective show cause notice and in passing an order mechanically by adjudicating the show cause notice could have been availed by resorting to a lawful procedure. This has certainly weighed contrary to the interest of the revenue and has enured only for the benefit of the assessee. We are hopeful that the concerned Commissionerate would take note of such issues seriously and whenever such defective adjudication is sought to be made, the same must be identified and appropriate approach be adopted, if the orders are found to be defective. 14. Also a question arises as to whether any accountability can be fixed on such offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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