Registration Cancelled on Basis of SCN which was Bereft of Any Allegations to be Restored | HC

Case Details: Monit Trading (P.) Ltd. v. Union of India - [2023] 152 taxmann.com 585 (Bombay)

Judiciary and Counsel Details

• • G.S. Kulkarni & Jitendra Jain, JJ.
  • Suryanarayan Iyer for the Petitioner.
  • Jitendra Mishra, Ms Mamta Omle & Ashutosh Mishra for the Respondent.

Facts of the Case

A show cause notice (SCN) was issued to assessee regarding cancellation of its registration but the SCN was bereft of particulars/description/allegations. The assessee made request to provide reasons which was not responded by the Assistant Commissioner and passed the order cancelling assessee’s registration without any discussion about material/basis.

It filed appeal but the Appellate Authority did not address issue of breach of principles of natural justice suffered by assessee. Therefore, it filed writ petition against the cancellation order.

High Court Held

The Honorable High Court noted that the SCN itself recorded that registration of petitioner was being suspended from date of SCN but the officer passed order cancelling assessee’s registration retrospectively with effect from 1-7-2017, which was also not part of show cause notice.

Also, it was further noted that the reasons as set out by Appellate Authority in confirming order of cancellation were ex facie untenable. Therefore, it was held that registration was to be restored and the High Court also directed to forward a copy of this order to the Secretary, Ministry of Finance, Government of India, so that due care and caution shall be taken in respect of officers who acted illegally.