Rani Sati Traders vs Principal Commissioner of Department of Trade and Taxes [W.P. (C) NO. 9563 OF 2024]
The petitioner submitted a petition challenging a show cause notice dated June 12, 2024 (hereinafter referred to as the contested SCN). This contested SCN was issued to the petitioner, requiring an explanation as to why its GST registration should not be revoked. Additionally, the petitioner expressed dissatisfaction with the suspension of its GST registration, which took effect from the date of the contested SCN – June 12, 2024.
The sole justification presented in the contested SCN for suggesting the cancellation of the petitioner’s GST registration was as follows: ‘1 As per attached Memo No.751 dated 10.06.2024 received from Deputy comm. of state tax, Jhajjar’
It was observed that the petitioner was required to submit a response within seven working days from the date the contested SCN was issued. Additionally, the petitioner was informed that failure to provide a reply within the specified timeframe or to attend the personal hearing at the designated date and time would result in the case being adjudicated ex-parte, based on the existing records and merits.
The petitioner asserts that while the contested SCN indicates the inclusion of memo no. 751 dated 10.06.2024, no such attachment accompanied the SCN in question. He contended that the petitioner had no knowledge of memo no. 751 dated 10.06.2024 or its contents. Furthermore, it was noted that this memo was also not accessible on the petitioner’s GST portal.
The contested SCN references memo number 751 dated June 10, 2024; however, it fails to specify that any electronic copy or file was included with the SCN. Given that the sole basis for suggesting the cancellation of the petitioner’s GST Registration is the aforementioned Memo number 751 dated June 10, 2024, the notice in question cannot generate a valid response due to the lack of a copy of the memo.
It was important to highlight that, despite the petitioner being informed that failure to attend a personal hearing on the designated date and time would result in an ex-parte decision, the contested SCN does not specify any date or time for the petitioner to appear in order to take advantage of the opportunity for a personal hearing.
It was apparent that the impugned SCN was issued without application of mind and failed to meet the standards required of a show cause notice.
In view of the above, the impugned SCN was set aside, and the petitioner’s GST registration was directed to be restored forthwith.
It was clarified that this will not preclude the respondent from initiating any fresh proceedings for cancellation of the petitioner’s GST registration in accordance with the law.
Rani Sati Traders vs Principal Commissioner of Department of Trade and Taxes
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