SCN of cancellation of registration for bogus billing without any information is not sustainable: HC

Case Details: Vageesh Umesh Jaiswal v. State of Gujarat - [2022] 136 taxmann.com 392 (Gujarat)

Judiciary and Counsel Details

• • J.B. Pardiwala and Ms. Nisha M. Thakore, JJ.
  • Kuntal A Parikh for the Petitioner.
  •  Utkarsh Sharma, Ld. Asstt. Govt. Pleader for the Respondent.

Facts of the Case

The petitioner was engaged in the business of trading of aluminium round bars, steel tubes, pipes etc. The show cause notice (SCN) was issued on the petitioner seeking reason as to why registration should not be cancelled on account of bogus billing. In the reply to the SCN, the petitioner brought to the notice of the Commercial Tax Officer that the show-cause notice was as vague as anything as no details of the name of the supplier etc. had been furnished. The order was issued for cancellation of registration along with demand. It filed writ petition against the same.

High Court Held

The Honorable High Court observed that SCNs have great significance in adjudication proceedings as they ensure compliance of principles of natural justice. A SCN should not be issued on assumptions and presumptions and allegations and findings in SCN must be supported by some documentary evidences. In the instant case, when there were allegations of bogus billing, it was expected of the authority to at least furnish some information about such bogus billing. Therefore, cancelling the registration on the ground of vague SCN was not sustainable and such cancellation order was liable to be set aside.

List of Cases Referred to

• • CCE v. Brindavan Beverages (P.) Ltd. 2007 taxmann.com 728 (SC) (para 9).