Order Date – 19 January 2023

Parties: Neha Enterprise Vs State of Gujarat

Facts – 

• The Petitioner, Neha Enterprise was issued with a show cause notice dated 10.05.2022 in Form GST REG-17/31, which was single page and no reason is reflected for the petitioner to meet with the challenge. 
• The petitioner was not granted time for personal hearing and the show cause notice did not mentioned the name and designation of the person issuing the notice before whom and what time and place the petitioner needed to appear.
• The State Tax Officer passed an order cancelling the registration of the firm without mentioning any reason for the cancellation. The revocation application was also rejected.

Issue – 

• Whether the cancellation of the registration is in order?

Order –

• The divisional bench of Hon’ble High Court observed that the show cause notice was issued in relation to investigation conducted and the report along with other documents including the photographs to be uploaded in FORM GST-REG 30 on the common portal within the period of 15 working days as per Rule 25 of the Act was not followed in this case.
• The respondent has not followed the required procedure so far as the spot visit is concerned. It was held that this serious lapses or breach of fulfilment of the provisions also further vindicate the need of interference on the part of this Court. 
• The Hon’ble Apex court permitted to issue notice through WhatsApp, telegram, signal, etc. as the instant messaging services at the time of COVID- 19 lock-down. Moreover, while so permitting the Court had also directed in addition, the parties to effect the service of such document by e-mail on the very date. 
• The service is said to have been effected through the registered A.D. post in wake of the glaring circumstances and more particularly, extremely weak foundation of the content of the notice, which this Court in Aggarwal Dying has not sustained.
• Hence the impugned order is set aside and directed to re-issue the show cause notice dated 10.05.2022 with particular reasons incorporated.