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Omission of 'reasonable opportunity of being heard before passing of a suspension order', was challenged before the Court, with the omission in the Notification being against the principles of Natural Justice.
The bench of Justice A.S Doctor and Justice K.R Shriram, of the Bombay High Court, granted an ad-interim stay in a petition that challenged the omissions in CGST and MGST Rules.
In the present matter, the petitioner approached the Bombay High Court, against a show cause notice issued on 8th August 2022, suspending his GST registration with effect from 8th August 2022”. The petition further stated that the GST registration was suspended by the authorities without giving the petitioner, a reasonable opportunity to be heard.
The Counsel for the petitioner, Vineet Kothari, argued that Rule 21A of the CGST Rules provided that the party shall be given a reasonable opportunity to present his case before the suspension of the registration, and the same was deleted by a notification. It was further argued, that such an amendment goes against the principles of natural justice. Further it was put forth, that a registered person with a suspended registration, in that entire period could not make any taxable supply and will not be granted refunds. Therefore, challenged the omission of the words, “after affording the said person a reasonable opportunity of being heard” in Sub-Rule (2) of Rule 21A of the CGST Rules, 2017 along with MGST Rules.
The High Court while allowing the petition, granted an ad-interim stay. The Bench further, stayed the operation of the show cause notice, while revoking the suspension of GST registration, and thereby restoring it, till the disposal of the case.
The matter is listed on 10th October 2022.
CASE TITLE: SAT Industries Ltd. vs. Union of India
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