A vague show cause notice lacking specific allegations constitutes a breach of natural justice, rendering administrative actions unsustainable.

JUDGMENT :

M.S. Sonak, J.

1. Heard learned counsel for the parties.

2. Rule. The rule is made returnable immediately, at the request and with the consent of the learned counsel for the parties.

3. The challenge in this Petition is to the order dated 07 July 2023, for cancellation of the Petitioner’s registration under the MAHARASHTRA GOODS AND SERVICES TAX ACT , 2017 (“the MGST Act”).

4. The impugned order was preceded by a show cause notice dated 12 June 2023, which is annexed at Exh-B, page 21 of the Petition.

5. The contents of the show cause notice dated 12 June 2023 at Exh-B are transcribed below for the convenience of reference.

Form GST REG-17

[See Rule 22(1)/sub-rule (2A) of rule 21A]

Reference Number: ZA270623104384Q

Date : 12/06/2023

To

Registration Number (GSTIN/Unique ID): 27JPLPS2317B1ZS

SAURABH SAHU

206, VASUDEV DHAM CHS LTD, 150 FT ROAD, Mira Bhyandar, thane, Maharashtra, 401101

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.

Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts.

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 pesonal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.

Please note that your registration stands suspended with effect from 12/06/2023

Place : Maharashtra

Date : 12/06/2023

SUDHAKAR KRISHNA TAMBE

State Tax Officer

MANDVI_710:MANDVI:MUMBAI_SOUTH_EAST:Maharashtra

6. The above show cause notice is entirely vague and bereft of any particulars. The show cause notice refers to Section 29(2)(e) and states that registration was obtained by means of fraud, willful misstatement or suppression of facts. Although a time limit was granted to file a reply and the Petitioner was informed that if he failed to appear for a personal hearing on the appointed date and time, the case would be decided ex parte, the show cause notice at Exh-B does not specify this appointed date or time.

7. Merely quoting a Section and alleging that registration has been obtained through fraud, willful misstatement, or suppression of facts in a show cause notice is never enough. The noticee must be given an idea of what the alleged fraud, misstatement, or suppression of facts was. Only then will the noticee be able to understand the allegations against them and respond effectively.

8. The Respondents, it appears, are also aware that this show cause notice, which is now exhibited at Exh-B (page 21), was entirely vague. Therefore, Ms Vyas, yesterday, produced before us what was meant to be an attachment to this show cause notice. This attachment contained the details of the allegations. She contended that this attachment, which accompanied the show cause notice at Exh-B, was suppressed by the Petitioner.

9. We were quite impressed with the above submission because it was the petitioner's duty to place on record the complete copy of the show cause notice, not just its truncated version. Therefore, we adjourned the matter to today to enable the learned counsel for the Petitioner to obtain instructions.

10. Learned counsel for the Petitioner, on instructions, states that on the portal through which the show cause notice dated 12 June 2023 (Exh-B) was served upon the Petitioner, there was no such attachment as was sought to be produced by Ms Vyas. He also presented screenshots