In the Matter of Sona Metals v. State of Gujarat a petition under Article 226 of the Indian Constitution seeking the issue of a writ of certiorari and the annulment of the Assistant Commissioner of Ahmedabad’s decision to revoke the petitioner’s firm’s GST Registration Number.The Gujarat Goods and Service Tax Act of 2017 allowed for the registration of the petitioner’s business. According to rule 22(1) of the GST Rules, 2017, the respondent issued a show cause notice with the ambiguous statement that “in case the registration was obtained by fraud, willful misstatement, or concealment of facts, it could be cancelled” on July 1, 2022. This was done by Section 29 of the GST Act. At his registered place of business, the petitioner stated he never got any notification. The firm’s GST registration was subsequently cancelled by another Order dated 15-07-2022. The petitioner contested the cancellation decision because the respondent’s show cause notice was ambiguous and lacked adequate details, making it impossible for him to respond.
Observation of the Court
The order was overturned by the division bench of Justice Devan M. Desai and Justice Vipul M. Pancholi of the Gujrat High Court because it was too ambiguous and without adequate details.
The court took notice of a decision made based on the fact that the respondent had not given detailed justifications for the cancellation of the registration as required by Section 29(2) of the GST Act. As a result, the Court granted the petition, invalidated the show cause notice, and set it aside. The Court further provided the respondent authorities freedom to publish a new notice with thorough justification, give the petitioner a reasonable time to respond, and then make an appropriate order in line with the law. The respondent was instructed to reinstate the petitioner’s registration.