Order Date – 22 May 2023

Parties: M/s Roxy Enterprises Vs Union of India & Ors.

Facts – 

• The Petitioner, M/s Roxy Enterprises, carries on the business for exporting automobile parts and other assorted hardware products. 
• The respondent issued a show notice dated 25.01.2023 proposing to cancel the registration stating the reason as “others” and the petitioner was directed to furnish a response. The petitioner responded to the said show cause notice. However, was not afforded a hearing by the concerned officer.
• The concerned officer passed the impugned order cancelling the petitioner’s registration stating that the tax payer is non-existing as per Deputy Commissioner, Anti Evasion.

Issue – 

• Whether the cancellation of GST is in order?

Order – 

• The Divisional Bench of Hon’ble High Court observed that the show cause notice is inadequate and fails to meet the requisite standards of a show-cause notice. The impugned show cause notice does not disclose any discernible reason for proposing adverse action against the petitioner.
• No adverse order could be passed against the petitioner without informing the petitioner of reasons for the same and affording him an opportunity to respond to the same. Thus, the impugned order dated 14.02.2023 is void as having been passed in violation of the principles of natural justice.
• Hence it was held that the impugned order is set aside and remanded the matter to the concerned officer to consider afresh after affording the petitioner a full opportunity to be heard.