Order Date – 21 June 2023

Parties: Om Trading Vs State of Gujarat 

Facts – 

• The Petitioner, Om Trading, purchased and sold goods in the usual course of business and the transactions were reflected in the returns. 
• A show cause notice was uploaded in GST portal proposing to cancel their registration certificate under the Act by simply stating that the registration was obtained by means of fraud, willful misstatement or suppression of facts.
• The petitioner was unaware of the issuance of show cause notice and authority passed an order cancelling the GST registration.

Issue – 

• Whether the show cause notice and order are valid?

Order – 

• The Divisional Bench of Hon’ble High Court observed that while issuing Show-cause notice for cancellation of Registration, necessary documents were not supplied and the notice is cryptic. Therefore, it was not possible for the petitioners to give reply to the said Show-cause notice. 
• Further, while passing the impugned order for cancellation of registration, the respondent authority has not assigned any reason and thus, the order passed by the respondent authority is not a speaking order.
• Accordingly, the present petition is allowed. The Show-cause notice as well as the order are quashed and set aside. The concerned respondent is hereby directed to restore the registration of the petitioners forthwith. However, liberty is granted to the respondent authorities to issue fresh notice with particulars of reasons incorporated with details and thereafter to provide reasonable opportunity of hearing to the petitioner.