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TMI Blog2025 (3) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel representing Sri Dominic Fernandes, learned Senior Standing Counsel for CBIC, for respondent No.2. 2. With the consent, finally heard. 3. This petition filed under Article 226 of the Constitution assails the show cause notice dated 01.11.2024 whereby the petitioner's registration was suspended with effect from 01.11.2024. The petitioner is also aggrieved by the final order of cancellation of registration dated 16.01.2025. 4. The sheet-anchor argument of learned counsel for the petitioner is that as per the prescribed Form GST REG-17, the Department is under a statutory obligation to assign reasons on which show cause notice is based. The reasons mentioned in the impugned show cause notice are as under: 1. Rule 21(e)-person a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h a document which is annexed with the show cause notice and which is an internal correspondence between two departmental authorities and then try to gather what could be the allegation against him. The show cause notice should be specific and should be pregnant with necessary details. In absence thereof, this Court in aforesaid W.P.No.20080 of 2024 interfered with a show cause notice by recording following findings: "6. We have previously interfered with similar notices which were not pregnant with necessary factual details and descriptions. We find substance in the argument of learned counsel for the petitioner that such a notice runs contrary to principles of natural justice and deprives the assessee to file an effective reply to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 557, at para No.15, which reads as under: "15. ...Notice is the first limb of this principle. It must be precise and unambiguous. It should apprise the party determinatively of the case he has to meet. Time given for the purpose should be adequate so as to enable him to make his representation. In the absence of a notice of the kind and such reasonable opportunity, the order passed becomes wholly vitiated. Thus, it is but essential that a party should be put on notice of the case before any adverse order is passed against him. This is one of the most important principles of natural justice. It is after all an approved rule of fair play. The concept has gained significance and shades with time..." 11. In the Rajesh Kumar vs. CIT [2006] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th are set aside. On regular basis, we are painfully noticing this kind of notices, whereby, without assigning adequate reasons, the business of taxpayer is suddenly suspended. In absence of basic reasons available in the show-cause notice, the party aggrieved by it cannot even prefer an effective representation. We wonder how in such an insensitive and mechanical manner, the registrations are being suspended by issuing defective show-cause notices. Such orders certainly have an adverse impact on the livelihood of taxpayer and hits Article 21 of the Constitution. The authorities must remind themselves that the words 'LIFE' and 'FILE' contain same letters. Every file has a nexus with somebody's 'life' or liberty. Thus, the authorities should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in our opinion, runs contrary to the principles laid down by this Court in aforesaid W.P.No.20080 of 2024. The departmental authorities must understand the difference between the 'reasons' and 'conclusions'. Under the head 'reasons', infact departmental authorities have recorded their conclusion that the petitioner has breached certain Rules mentioned hereinabove. On what basis and on what factual details such violation has taken place is not spelled out. Thus, the impugned show cause notice which became foundation of issuance of impugned final order is bad in law. Since the foundation i.e., impugned show cause notice is cryptic and bad in law, the edifies standing of said cryptic notice by impugned final order also cannot sustain judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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