Pazhayidom Food Ventures (P) Ltd. vs. Superintendent Commercial Taxes, Addl. R2. Superintendent Cgst, Pala.
(Kerala High Court, Kerala)

The brief facts leading to filing of instant case is that the petitioner is a private limited company engaged in outdoor catering service. According to the revenue, the petitioner did not file the return resulted into a show cause notice for cancellation of registration dated 9th January 2020, Ext.P2. The aforementioned notice was replied and thereafter issued a cancellation order dated 11.01.2020.

2. Learned counsel appearing on behalf of the petitioner submits that the show cause notice in Form GST REG-17 did not mention about the date, month and year as well as the time for appearance of the petitioner. The contents of the same are vague and do not commensurate with the format prescribed in Central Goods and Service Tax Rules, 2017 where a column of day, month and year has been prescribed. It is on that account this Court had issued notice and sought the comments thus impelling to invoke, the extra ordinary jurisdiction of this Court as the order under challenge is without jurisdiction.

3. Learned counsel appearing on behalf of the respondent submits that the actual format of GST published under the Rule 22(1) of 2017, is one where there is a provision of date, month as well as year. Vide Ext.P2 show cause notice, the petitioner was called upon to submit a reply within 7 days and in case of any failure or personal appearance would entail into an exparte order.

An objection qua the maintainability in view of the alternative remedy has also been taken.

4. I have heard the learned counsel for the parties and appraised the paper book. Before referring to the rival contentions of the parties, it would be expedient to extract the contents of notice Ext.P2 as well as actual format ie., Form GST REG-17 contained in Rule No.22 (1).

Ext.P2:

Form GST REG – 17

[See Rule 22(1)]

Reference Number:ZA320120008425E              Date:09/01/2020

To

PAZHAYIDOM FOOD VENTURES PRIVATE LIMITED 3/402, VADAKKEDATHU BUILDING, KURICHITHANAM P.O, UZHAVOOR, ERNAKULAM, KERALA 686634

Show Cause Notice for Cancellation of Registration

Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:

1. Any Taxpayer other than composition taxpayer has not field returns for a continuous period of six months

You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.

If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits. Place:Kerala

Date:09/01/2020

TOMY JOSEPH

Superintendent

Commercial Tax Office, I Circle:Kottayam:Kerala

Form GST REG-17 contained in Rule No.22 (1)

FORM GST REG-17

[Reference No.:                  Date:

To

Registration Number (GSTIN/UIN)

(Name)

(Address)

SHOW CAUSE NOTICE FOR CANCELLATION OF REGISTRATION

Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:-

1

2

3

….

* You are hereby directed to furnish a reply to this notice within seven working days from the date of service of this notice.

* You are hereby directed to appear before the undersigned on DD/MM/YYYY at HH/MM.

If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.

Place:

Date:

Signature

Designation

Jurisdiction

5. On juxtaposing of both the notices, show cause notice Ext.P2 is not in order. The reference of date, month, year and time is conspicuously wanting. In my view, the notice lacks the compliance of the principles of audi alteram partem. Accordingly, the notice and the order of cancellation Exts.P2 and P4 are hereby quashed. The matter is remitted to the 2nd respondent to comply with the observation derived from the Form GST REG-17.

Learned counsel appearing on behalf of the respondent is also directed to take up the issue at the appropriate level so that the affected parties are not compelled to approach this Court on non compliance of principles of natural justice. Both the counsel representing the parties are in ad idem by requesting for a date of appearance, personal hearing and submission of the reply by this Court. Keeping in such request, I direct the petitioner to appear on 30th June 2020 at 11.30 a.m before the 2nd respondent.

With the aforementioned observation, the writ petition stands allowed.