Order Date – 17 February 2023

Parties: Arsh Traders Vs Commercial Tax officer, Ghatak 65,Surat

Facts –

• The Petitioner, Arsh Traders, was issued with a show cause notice on 24.06.2019 by the respondent by the cancellation of registration on the ground that it has been obtained by means of fraud and willful mistake and by suppression of facts. The petitioner was directed to appear on 28.06.2019, however, when no physical notice was received and as the petitioner is not techno savvy, he could not accede.
• On 26.07.2019, pursuant to the said notice, respondent cancelled the registration of the petitioner without making any mention or reason of cancellation. The petitioner preferred revocation of cancellation of registration no actions had been taken.

Issue –

• Whether the cancellation of registration is in order?

Order –

• The Divisional Bench of Hon’ble High Court observed that no procedure had been followed by the proper officer and had not chosen to issue any notice to show cause indicating his intention of rejection.
• It was also held that the show cause notice, which has been issued, is quite cryptic. This Court in Special Civil Application 18860 of 2021 (2022) 137 Taxmann.com 332 (Gujarat) – Aggarwal Dyeing and Printing Works versus State of Gujarat & Ors., has at length decided this issue, held that the procedural aspects should be looked into by the authority concerned very scrupulously and diligently. Why unnecessarily give any dealer a chance to make a complaint before this Court when it could have been easily avoided by the department.
• Writ Petition disposed of.