Vageesh Umesh Jaiswal v. State of Gujarat ( 2022) (64) G.S.T.L. 177 ( Guj.)(HC)

Central Goods and Services Tax , 2017 –Central Goods and Services Tax Rules , 2017

S. 62 : Assessment of non -filers of returns – Interest on delayed payment of tax – Central Goods and Services Tax Rules , 2017 – Registration- Strictures against Departmental Officers – Cancellation of registration by Commercial Tax Officer on basis of vague show cause notice in one line order – Officer making mockery of justice and provisions of law – Not to remain in office on such understanding of law – Cancellation of registration was set aside – Liberty was given authority to issue fresh show cause notice [ [S. 50, R. 21 , 86A]

Dealing with cancellation of Registration  the Court observed that no reasons was assigned in show cause notice , mere incorporation of Rule 21 of the Central Goods and  Service Tax Rules , 2017  is insufficient . Authority to at least furnish some information about bogus billing alleged . Contention that input tax credit also blocked in exercise of powers under Rule 86A  ibid also not justified as order already outlived its statutory life period of one year . Blocking of inpute  tax credit also to end . Cancellation of registration set aside on ground of vague show cause notice benefit of any material particulars with liberty authority to issue fresh show cause notice . With caution  that fresh show cause notice should contain all necessary details  and information  about alleged bogus billing to enable assessee to file effective reply to it . Court also observed that cancellation of registration by Commercial Tax Officer on basis of vague show cause notice in one line order . Officer making of justice and provisions of law , not to remain in office on such understanding of law .      

 

One comment on “Vageesh Umesh Jaiswal v. State of Gujarat ( 2022) (64) G.S.T.L. 177 ( Guj.)(HC)
  1. Sejal Savla says:

    “If such is the understanding of the Commercial Tax Officer, then he does not deserve to remain in office even for a day. We are constrained to use some harsh words because this is a common feature. Everyday we come across matters of the present type and the officers are not ready to understand.”
    These are the exact words used in the judgment. Its much needed course correction for GST Officers who have become law unto themselves. (especially in matters of registration – where they introduce new requirements which are not mentioned in the Act or Rules.

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