A notice has been issued to the Union and Maharashtra governments by the Bombay High Court, asking for a reply to the petition regarding the changes to the GST compliances through which the GST enrollment could get suspended excluding providing the influenced party a hearing.
A division bench of Justices K R Shriram and A S Doctor, dated August 29, allocated notice to the Attorney General of India and Advocate General of Maharashtra as the appeal challenges the validity of a provision of law.
The court hearing the petition which is furnished by SAT industries ltd opposing the show cause notice which has been allocated to it in the month of August 2022 for the revocation of its GST registration.
According to the appeal of the firm inside the notice itself, mentioned that “please note that your registration stands suspended with effect from 08/08/2022”.
Senior counsel Vineet Kothari, emerging for the petitioner, contended the original Rule 21A (2) of the Central Goods and Service Tax Rules, 2017 furnished that a party will be provided with a reasonable opportunity heard to the passing of a suspension order.
But the same provision was deleted in the month of December 2020, expressed Kothari, he indeed mentioned the same revision to the Rules goes opposing the principle of natural justice since the implication of the suspension was intense.
The constitutional validation of revision would be challenged by the petition that excludes the words “after affording the said person a reasonable opportunity of being heard”.
It articulated, that registration of the GST suspension without hearing the related party, violates the fundamental rights under Article 19(1)(g) of the Constitution of India.
The court rendered that both the Union and state governments would furnish their affidavits to the appeal and mentioned the concern for the forthcoming hearing dated 10th October.
Through the method of interim relief, the High court grants an interim stay on the show cause notice issued to the petitioner firm.
