In WRIT TAX No.1511 of 2022-ALL HC-Proper Officer has to issue notice in Form GST REG-17 when he has reasons to believe that registration of person is liable to be cancelled u/s 29 of UPGST Act: Allahabad HC on Rule 22(1) of UPGST Rules
Justices Manoj Kumar Gupta & Jayant Banerji [22-12-2022]

Read Order: M/S Jaiprakash Thekedar v. Commissioner, Commercial Taxes And Another 

LE Correspondent

Prayagraj, March 13, 2023: The Allahabad High Court has quashed an Order cancelling registration of a firm under the provisions of the Uttar Pradesh Goods and Services Tax Act, 2017 after noting that the Show Cause Notice did  not mention the date and time appointed for personal hearing and the proceedings held in pursuance thereof were illegal.

The Division Bench of Justice Manoj Kumar Gupta and Justice Jayant Banerji was approached by the assessee against the cancellation of the registration of the firm and the coercive action sought to be taken against the petitioner as a result of cancellation of the registration.

The petitioner was given a show cause notice requiring the petitioner to submit a reply within seven working days from the date of service of the notice. The notice further mentioned that if the petitioner failed to furnish reply within the stipulated date or failed to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records on merits. It was followed by an impugned cancellation order.

As per UPGST Act, under first proviso to Section 29(2), the person concerned has to be given an opportunity of being heard. Rule 22(1) of the U.P. Goods and Service Tax Rules, 2017 provides that where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under Section 29 of the Act, he shall issue a notice to such persons in Form GST REG-17 requiring him to show cause within a period of seven working days from the date of service of such notice as to why such registration be not cancelled. 

Referring to Form GST REG-17 and the Show Cause Notice, the Bench said, “ The show cause notice which has been given to the petitioner is not in prescribed format as it is conspicuous by absence of the date and time on which the noticee was to appear for personal hearing. It is also clear from the prescribed format that the noticee has to be afforded opportunity of personal hearing and for that purpose he has to be informed in advance, the date and time on which hearing will take place.”

Thus, observing that the show cause notice did not mention the date and time appointed for personal hearing, the Bench came to the conclusion that the proceedings held in pursuance thereof were rendered illegal, void and a nullity in the eyes of law. 

Quashing the impugned Order, the Bench allowed the Appeal.