(2023) taxcode.in 167 HC
IN THE HIGH COURT OF BOMBAY
Pakiza Steel LLP
v.
Union of India and Ors.
Writ Petition (L) No. 36576 of 2022
Decided on 27-Apr-23
Justice Nitin Jamdar and Justice Abhay Ahuja
Add. Info:
For Appellant(s): Mr. Bharat Raichandani with Mr. Rishabh Jain
For Respondent(s): Ms. Bhakti Date with Mr. Saket Ketkar, Mr. Himanshu Takke, AGP
Judgment/Order:
P.C. :-
Heard the learned Counsel for the parties.
2. The Petitioner has challenged the order of cancellation of Petitioner’s registration dated 15 September 2022.
3. The Petitioner is engaged in trading of iron and scrap. The Petitioner had obtained Goods and Services Tax (GST) registration. On 5 September 2022, the Petitioner had received a show cause notice to show cause by 6 September 2022 the registration of the Petitioner should not be cancelled and by the said order, registration of the Petitioner is suspended with effect from that date.
4. According to the Petitioner, the Petitioner did not have time to adequately prepare yet the Petitioner submitted a reply and without considering the reply, the final order came to be passed, that is, the impugned order. The learned Counsel for the Petitioner further contended that the impugned order would show that the order does refer to the reply, but does not consider the same, and the Authority has proceeded to pass an order on entirely different ground on which the Petitioner did not get opportunity. The learned Counsel for Respondent Nos. 1 and 2 contended that the Petitioner was given an opportunity, however, submitted reply beyond the said date.
5. The learned Counsel for the Petitioner requests that the show cause notice be restored and opportunity be given to the Petitioner. By the show cause notice, the registration of the Petitioner is suspended. If the impugned order is set aside and opportunity is given to the Petitioner and show cause notice is restored, the suspension order would continue till disposal.
6. Considering the fact that the impugned order has been passed in above circumstances, we are of the opinion that the Petitioner be given an opportunity before the final order of cancellation of registration is made. However, we do not intend to restore registration till the final order is passed and would continue suspension as per show cause notice.
7. The impugned order dated 15 September 2022 is quashed and set aside. The show cause notice dated 5 September 2022 stands restored to the file of Respondent No.2 along with directions for suspension of registration.
8. The Petitioner would appear before Respondent No.2 on 10 May 2023 thereupon Respondent No.2 will give a suitable date for hearing. It is open to the Petitioner to file reply affidavit. Thereupon Respondent No.2 will pass a final order within a period of two weeks.
9. The observations made in the impugned order and reply affidavit filed thereto be treated as prima facie opinion of the Respondent- authority.
10. As regards the attachment of bank account is concerned, the Petitioner has a remedy of making an application under Rule 159 (5) of the Central Goods and Services Tax Rules, 2017. Thus, no separate order is required in that regard.
11. Writ Petition is accordingly disposed of.
NITIN JAMDAR, J.
ABHAY AHUJA, J.
Original judgment copy is available here.