GST Registration of a Chartered Accountant #CA was cancelled retrospectively on the basis of copy-cut-paste notice with flaws in Show Cause Notice #SCN and Order has flaws writ provisions of Section 29(2).
The CA approached Delhi High Court then what happened?
Facts of the case:
Assessee did not filed GST Returns for continuous 5 months
A SCN was issued on 01.10.21 giving Assessee 30 days time to file reply why his registration should not be cancelled for non filing of Returns for continuous 6 months and personal visit 5.10.21
On 28.12.21 Cancellation Order was passed where GST Registration was cancelled retrospectively wef 11.07.2017 U/s 29(2) of GST Laws
High Court held:
“the show-cause notice dated 01.10.2021, to say the very least, in parts, is incomprehensible”
"A plain reading of the show-cause notice shows that it actually does not crystallize the reason for cancelling the registration.”
High Court further held that "n the very same show-cause notice, above the heading observations, what is sought to be projected as reasons are hardly reasons, as these are mere statements of fact rather than prima facie reasons for issuance of the show-cause notice.”
“the order of cancellation is made effective retrospectively i.e., from 11.07.2017, whereas, the aforementioned showcause notice, contains no such proposal. Therefore, clearly, the order cancelling the registration is beyond what was proposed in the show-cause notice.”
Court recalled the order of cancellation
Title: Bansal Surinder vs Commissioner, Department of Trade and Taxes/GST (State)
Court: Delhi High Court
Citation: W.P.(C) 15129/2022 & CM Nos.46787/2022
Dated: 02-11-2022
Matter is listed on 15-Dec-2022