Order Date – 10 February 2023

Parties: Gigamade Machineries Private Limited Vs State of Gujarat

Facts –

• The Petitioner, Gigamade Machineries Private Limited, was issued with a show cause notice dated 09.05.2022 simply stating the reason that the taxpayer found non-functioning / not existing at the principal place of business.
• The State Tax Officer, passed an order on 04.06.2022, cancelling the registration of the petitioner firm without mentioning any reason for the cancellation and only mentioned that the order of cancellation has been passed - “1. As per attached sheet”.

Issue –

• Whether the cancellation of GST registration is in order?

Order –

• The divisional bench of Hon’ble High Court observed that show cause notice is absolutely vague, bereft of any material particulars and the impugned order is also vague and a nonspeaking order. 
• The Authority ought to have at least referred to the contents of the show cause and the response thereto, which was not done. The authority ought to have followed the principles of natural justice, which has not been done in the present case.
• Not only the order is nonspeaking but cryptic in nature and the reason of cancellation not decipherable therefrom. In such circumstances, the principles of natural justice stand violated and the order needs to be quashed as it entails penal and pecuniary consequences.