THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.5249 OF 2024 ORDER:(per Hon’ble Sri Justice P.SAM KOSHY Heard Mr.V. Siddharth Reddy, learned counsel for the petitioner and Mr.Bhaskar Reddy, learned Assistant Government Pleader for respondents. Perused the material available on record.

2. The challenge in the present writ petition is to the order annexure P-1, dated 30.01.2024. Vide the said order, the GST registration of the petitioner stands canceled. The cancellation has been given the effect with retrospective date 01.07.2017, the date on which the GST Act itself came into force.

3. The petitioner herein was issued with show cause notice on 21.10.2023. The challenge in the said show cause notice dated 21.10.2023 was with respect of input tax credit for the identified fraudulent tax payer. The petitioner immediately gave a response to the said show cause notice on 02.11.2023 (annexure-P-5). Immediately on receipt of the said reply by the petitioner, the authority concerned vide order dated 15.12.2023 issued Form GST REG-20. The suspension of the registration which was effected vide show cause notice dated 21.10.2023 stood revoked. Surprisingly on the very same day by the very same officer, there was yet another show cause notice issued, alleging very same allegation of the ITC from identified fraudulent tax payers (annexure P-2) dated 15.12.2023. To this also, the petitioner immediately gave a reply on 21.12.2023. Pending consideration of the said show cause notice, the authorities concerned thrashed yet another show cause notice on 20.01.2024 by the 1^st respondent under Section 29(2)(e) to which action, the petitioner has given his reply on 24.12.2024. The said show cause proceeding is still pending consideration.

4. Meanwhile, however admittedly the impugned order now has been passed annexure P-1 dated 30.10.2024 canceling the registration of GST of the petitioner with a retrospective effect from 01.07.2017.

5. On perusal of the impugned order would reveal that the instant cancellation of registration has been passed pursuant to the earlier show cause notice dated 15.12.2023, to which the petitioner had replied on 21.12.2023. The passing of the show cause notice and the impugned order of cancellation of registration clearly indicate that the show cause notice was given with a different allegation and the cancellation of the registration has been done on altogether different ground other than that which is mentioned in the show cause notice.

6. Further, what is also admittedly evident that before passing of order of cancellation of registration, the petitioners also have not afforded with any opportunity of personal hearing so as to justify their stand in respect of the alleged allegation of any fraud, willful, misstatement and supression of fact. Neither the show cause notice nor order of cancellation of registration provides for any reason or findings by which the authorities thought of issuance of show cause notice and suspend the operation of the GST registration and also which lead to the cancellation of the GST registration.

7. This Court, recently, in W.P.No.1596 of 2024 decided on 23.01.2024 had allowed the writ petition setting aside the cancellation of registration under similar circumstances and the matter was remitted back for the respondent authorities to pass an order afresh. For ready reference, paragraph No.7, is reproduced herein under:

“7. Dealing with an issue of cancellation of GST registration, this very High Court in Writ Petition No.25671 of 2023 decided on 03.10.2023 relying upon the decision of the High Court of Delhi in the case of Kritika Agarwal v. Union of India and others1 held as under:

“in the case of Kritika Agarwal v. Union of India and others, wherein the High Court in the case of cancellation of GST registration had observed that “the measure of cancellation of GST must be exercised with circumspection and only in cases, where it is necessary”