Cancellation order not sustainable due to cryptic in nature & passed without personal hearing: HC

Case Details: Mahendra Junabhai Zala v. Office of Deputy Commissioner, State Tax - [2022] 145 taxmann.com 651 (Gujarat)

Judiciary and Counsel Details

• • Ms Sonia Gokani & Mrs Mauna M. Bhatt, Jj.
  • Yogini V. Parikh & Ms Noopur V. Parikh for the Petitioner.
  • Ms Pooja Ashar for the Respondent.

Facts of the Case

A show cause notice (SCN) was issued against the petitioner for cancellation of registration and consequential order confirming such cancellation was passed. He filed appeal against order after four years from date of issuance of order and same was rejected as time barred. Thereafter, he filed writ petition against the cancellation of registration and contended that order and SCN were cryptic in nature.

High Court Held

The Honorable High Court noted that the petitioner has deposited sum of Rs.37,43,714/- as tax and the interest amount during the relevant period which is lying in the cash ledger. The Court also noted the contention of petitioner that returns were not filed due to negligence and death of accountant and he was not aware of SCN uploaded by department as same was not reflected in portal. Therefore, it was held that impugned order was passed without providing opportunity of personal hearing to petitioner which was in violation of principle of natural justice. Thus, the instant writ petition was maintainable and the Court also directed department to restore registration of petitioner.