HC Restored Registration of Assessee Which Was Cancelled by Merely Mentioning “Obtained by Fraud or Misstatement or Suppression”

Case Details: T S R Exports v. Superintendent, GST - [2024] 162 taxmann.com 415 (Hyderabad)

Judiciary and Counsel Details

• • Sujoy Paul & N. Tukaramji, JJ.
  • Venkatram Reddy Mantur, Special Govt. Pleader for the Respondent.

Facts of the Case

The petitioner was served with a show cause notice for cancellation of registration and in the said notice itself it was mentioned that the registration of the petitioner stands suspended. The petitioner was directed to reply and appear in person for hearing at the appointed date. The said notice was followed by the impugned order cancelling the registration of the petitioner.

The petitioner submitted application for revocation of cancellation but the same was rejected. It filed writ petition against the order and contended that the factual backdrop and alleged breach on the part of the petitioner was not spelled out.

High Court Held

The Honorable High Court noted that the show cause notice showed that singular reason for taking action was that registration was liable to be cancelled on ground that “registration is obtained by means of fraud, wilful misstatement or suppression of facts” but it did not mention factual backdrop of breach. If minimum factual backdrop and nature of breach was not mentioned with accuracy and precision, the petitioner was not in a position to file reply. Therefore, it was held that the show cause notice and impugned order were to be set aside and the Court also directed that the registration of assessee to be restored.

List of Cases Referred to

• • Canara Bank v. Debasis Das (2003) 4 SCC 557 (para 10)
  • Rajesh Kumar v. CIT (2007) 2 SCC 181 (para 11).