1. By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs:

“(A) YOUR LORDSHIPS may be pleased to issue writ in nature of mandamus and / or other appropriate writ quashing and setting aside the impugned show cause notice dated 14.12.2021 and the impugned order of cancellation of registration dated 30.12.2021 passed by the respondent No.2;

(B) DURING THE PENDENCY AND UNTIL THE FINAL DISPOSAL OF THIS PETITION YOUR LORDSHIPS may be pleased to stay the implementation and operation of the impugned show cause notice dated 14.12.2021 and impugned order of cancellation of registration dated 30.12.2021 passed by the respondent No.2 and further direct the respondent authorities to suspend the impugned show cause notice and order of cancellation of the registration; AND

(C) YOUR LORDSHIPS may be pleased to grant any other and further relief deemed just and proper in the interest of justice.”

2. The facts, which emerges from the record, are summarized as under:

2.1 The writ applicant is a Proprietorship concern based at Rajkot and is engaged in the business of trading of Areca Nuts. In the month of September, 2021, the writ applicant had applied for registration with GST department and on 06.10.2021, the writ applicant was issued Unique Identification registration bearing No.24IRSPK1732C1ZT.

2.2 The writ applicant had placed the order for purchase of 24,500 Kgs. of Areca Nuts worth Rs.63,70,000/-. On 08.11.2021, necessary documents like tax invoices were raised in the name of Izaan Trading, based at Karnataka and as against that E-way bills were also generated on same day, which were valid upto 16.11.2021. The goods were loaded in truck having registration with the Tamilnadu State Road Corporation.

2.3 On 13.11.2021, while the conveyance carrying aforesaid goods was in transit, the same came to be intercepted at Navapura-Songadh Highway, Surat by the State Mobile Squad. On the same day, the statement of the driver was recorded and Form GST-MOV-01 and 02 came to be issued.

2.4 Subsequently, on 17.11.2021, the detention order came to be passed by issuing Form GST MOV 6, which was served upon the driver of conveyance. In the meanwhile, the goods were stationed at RTO Check Post, Surat.

2.5 It is the case of the writ applicant that the respondent authority had never served any notice informing writ applicant about detention of goods. On 20.11.2021, the writ applicant submitted a detailed representation to the respondent authority with a request to release the detained goods. Considering the nature of perishable goods, the writ applicant was constrained to approach this Court by filing petition being Special Civil Application No.19116 of 2021 thereby challenging the order passed under Form GST MOV-06.

2.6 On 30.11.2021, the writ applicant had remained personally present for interrogation and his statement was recorded. Thereafter, the writ applicant was served with the summons asking the writ applicant to remain personally present on 02.12.2021. In response to such summons, the writ applicant had again remained present before the respondent authority and once again the statement of the writ applicant was recorded by the respondent Authority.

2.7 Though the writ applicant had co-operated in the inquiry, the writ applicant was taken away by surprise to learnt about issuance of show cause notice dated 14.12.2021 calling upon the writ applicant to show cause as to why the registration of the writ should not be cancelled. Further, the show cause notice mentioned that the registration of the writ applicant has been suspended pending the aforesaid proceedings. It is the case of the writ applicant that he learnt about issuance of such show cause notice when the same came to be uploaded on common portal.

2.7 On 17.12.2021, this Court was pleased to grant interim relief in pending petition and further directed respondent authority to consider the request of writ applicant for release of detained goods.

2.8 On 30.12.2021, the writ applicant learnt about the order of cancellation of registration of the firm passed by the respondent No.2, which was uploaded on the common portal.

2.9 Being aggrieved by the aforesaid show cause notice dated 14.12.2021 and consequential order dated 30.12.2021 cancelling the registration, the writ applicant has approached this Court through present petition.

3. We have heard Ms. Puja K. Ashar, the learned counsel appearing for the writ applicant and Mr. Utkarsh Sharma, the learned Assistant Government Pleader appearing for the respondents.

4. The short issue involved in the present writ application is that whether the show cause notice dated 14.12.2021 and consequential order dated 30.12.2021 are valid in the eye of law.

5. The learned advocate appearing for the writ applicant has vehemently objected with the manner in which the respondent authority has proceeded to pass the order of cancellation of registration. She has drawn attention of this Court to the content of the impugned show cause notice dated 14.12.2021 and has submitted that said the show cause notice is bereft of any material details and the reasons assigned by the respondent authority are vague. She further contended that the respondent authority should not have proceeded further in passing consequential order of cancellation of registration on such vague notice. On the other hand Mr. Sharma, learned counsel representing respondent authorities has tried to defend the order of cancellation of registration.

6. This Court had an occasion to address similar issue in group of petitions being Special Civil Application No.18860 of 2021 and allied matters in the case of Aggrawal Dyeing and Printing Works, wherein in the similar set of facts, the Court noticed the manner in which the respondent authorities are issuing show cause notice and the cancellation of registration , in exercise of power conferred under Section 29 of the GGST Act, 2017 read with Rule 22 of the rules framed thereunder.

7. We find that the show cause notice is not tenable in eye of law inasmuch as the same is found without any material particulars, which a prudent person would be able to respond. In the facts of the case, upon bare perusal of the contents of the show cause notice, we find that the reason recorded by the respondent authority is a mere incorporation of the relevant ground appearing in the Rules framed thereunder. The show cause notice should have referred to any material particulars as to in what manner the authority has prima facie found that the registration of the writ applicant has been obtained by means of fraud, will ful misstatement or suppression of facts. As against that upon perusal of the order for cancellation of registration passed by the respondent Authority, it refers to the initiation of proceedings under Section 67(2) of the GGST Act, 2017 in respect of M/s. Sridev Traders, Rajkot. It further emerges that the respondent Authority while passing the said order of cancellation of registration had referred to and relied upon the letter dated 14.12.2021 addressed by the State Tax Officer(1), Enforcement, Division-9, Bhavnagar with regard to the investigation proceedings. Thus, the respondent Authority has proceeded to pass the order for cancellation of registration on new material or facts which were neither formed part of the show cause notice nor the same were disclosed to the writ applicant. The aforesaid action of the respondent authority is in breach of violation of principles of natural justice. The writ applicant has been deprived of the reasonable opportunity without putting to their notice about such allegations, more particularly when the cancellation of registration under the GGST Act results into civil and criminal action. Thus, we find that the respondent authority has failed to adhere to the basic principles of natural justice and such action of the respondent authority is illegal and is required to be interfered with.

8. For the foregoing reasons, the show cause notice dated 14.12.2021 as well as the consequential order dated 30.12.2021 are quashed and set aside. We remit the matter back to the respondent Authority for denovo proceedings.

9. It is expected of respondent authority to abide by directions issued by this Court in Special Civil Application No.18860 of 2021 and allied matters. The GSTIN registration of the writ applicant is hereby directed to be restored.

In light of the aforesaid, the matters stands disposed in above terms.