Top Stories GST Registration Cancelled without Providing any Reason: Gujarat HC remands GST matter to AO at SCN Stage [Read Order] HC observed that the AO had passed the order of cancellation of registration without giving any reason for the same and that there was a clear violation of the principles of natural justice By Saagarika Gopinath – On October 29, 2024 12:48 pm – 2 mins read In a recent ruling, the Gujarat High Court remanded the Goods and Service Tax ( GST ) registration back to the Assessing Officer ( AO ) at Show Cause Notice ( SCN ) stage as the registration was cancelled by the department without providing any reason. In this case, the petitioner, M/S Jay Ambe Enterprise, had approached the High Court against an order passed by the appellate authority that upheld the order of cancellation of registration passed by the Assessing Officer, and the appeal was dismissed on the ground of limitation. Boost Your Business with SME IPO Funding Strategies – Enroll Now

The order of cancellation of GST registration was challenged on the ground that no opportunity for a hearing was provided, and the order was issued without stating any reasons for the cancellation. The bench, after relying on the observation of the coordinate bench in the case of M/s. Aggrawal Dyeing & Printing vs. State of Gujarat, opined that respondent authorities were issuing a cryptic notice and order for cancellation of the registration number of the petitioner without following the directions issued by the court. The High Court bench observed that the AO had passed the order of cancellation of registration without giving any reason for the same and that there was a clear violation of the principles of natural justice. Boost Your Business with SME IPO Funding Strategies – Enroll Now

The Bench set aside the order of cancellation of registration and remanded the matter back to the AO at the show cause notice stage. The Gujarat High Court bench, comprising of Justice Bhargav D. Karia and Justice Niral R. Mehta, directed the respondent-authorities to pass an appropriate order in accordance with law after providing detailed reasons and an opportunity of hearing to the petitioner. The bench further held that  “It is clarified that this Court has not gone into the merits of the matter. The respondent-authorities shall pass appropriate order in accordance with law after providing detailed reasons and opportunity of hearing to the petitioner.” The petitioner was represented by advocate Ms. Dixa Pandya and the respondent by A.G.P. Mr. Raj Tanna. To Read the full text of the Order CLICK HERE