HC Overturns GST Registration Cancellation as SCN Issued While Assessee Was in Custody

Case Details: Imthiaz v. Superintendent Mangaluru - [2024] 167 taxmann.com 14 (Karnataka)

Judiciary and Counsel Details

• S.R. Krishna Kumar, J.
• Shreehari Kutsa, Adv. for the Petitioner.
• Samanth Naik, HCGP for the Respondent.

Facts of the Case

The petitioner was registered under GST. The department issued a show cause notice proposing to cancel registration of petitioner on the ground that registration was obtained by fraud, willful misstatement or suppression of fact. The petitioner was arrested and he was not in a position to submit reply to show cause notice. Thereafter, the department passed order cancelling registration and petitioner filed writ petition against the same.

High Court Held

The Honorable High Court noted that the petitioner was granted only one day to submit reply and appear for personal hearing in the show cause notice. Moreover, the revocation application was also rejected and new reasons have been assigned for rejecting the revocation application which were not found in the original cancellation order.

The Court also noted that except stating that registration had been obtained by fraud, wilful misstatement or suppression of fact, necessary particulars, details, etc. were not forthcoming in impugned notice. Therefore, the Court held that the impugned order cancelling registration was violative of principles of natural justice and liable to be set aside.