Gujarat HC Criticizes Authority for ‘Cryptic’ GST Notice in Reg. Cancellation, Despite 2022 Orders

GST authorities are criticized by the Gujarat High Court for their failure to follow the two-year-old guidelines that they have issued in Aggrawal Dyeing & Printing vs. the State of Gujarat (2022) for issuance of reasoned show cause notices (SCN) for cancellation of GST registration.

In the same matter High Court asked the authorities to comprise all the important particulars in the show cause notice and alert them against “travelling beyond” the notice in their final order.

It was remarked by the Division bench of Justice Bhargav D. Karia & Justice Niral R. Mehta, that 

“Aforesaid judgement was rendered in the year 2022. However, despite the above direction issued by the Gujarat High Court, the respondent authorities without following such directions are issuing cryptic notice and order for cancellation of the registration number of the petitioner.”

In the present case, the applicant Gayatri Steel asserted that it was not furnished a chance of hearing, and the final order was passed through the Assessing Officer without giving any reason for cancellation of registration.

Also, the appeal of the applicant has been dismissed u/s 107 of the GST Act.

The cancellation of the registration has been quashed by the HC and the case was remanded for reconsideration however it mentioned that the applicants’ registration would stay suspended till Show Cause notice is determined via the Assessing Officer within the said timeline set by the High Court.

Advocate Paresh Dave appeared for Petitioner; Advocate Hetvi Sancheti appeared for Respondent.

Case Title	M/s.Gayatri Steel Company Vs The Union of India & Ors.
Citation	R/special Civil Application No. 10359 of 2024
Date	20.09.2024
Counsel For Appellant	MR Amal Paresh Dave (8961) No. 1
Counsel For Respondent	MS Hetvi H Sancheti (5618) No. 1,2,3,4
Gujarat High Court	Read Order