The Hon’ble High Court of Gujarat vide its order dated 11.04.2022 in the matter of Vahanvati Steels through Prop. Barot Chintankumar Mahendrakumar Vs.  State of Gujarat in R/Special Civil Application No. 7115 of 2022, slammed and warned the GST officer for not following the order of the Hon’ble High Court and proceeded with passing an order cancelling the registration of the writ applicant.

The writ applicant preferred the writ application before the Hon’ble High Court praying for quashing and setting aside the order dated 29.03.2022 passed by the State Tax Officer and to direct restoration of the registration of the petitioner.  Further, it was prayed for declaring Respondent No. 2 guilty of willful disobedience of the order dated 24.03.2022 passed by the Hon’ble Court in Special Civil Application No.6008 of 2022, and also for staying the proceedings pursuant aforesaid order of cancellation of registration dated 29.03.2022.

Held: –

• The Hon’ble Court after considering the submissions from the both sides and examining the facts of the case observed that it is a second round of litigation created by Respondent No. 2 for no good reason. It all started with issuance of vague show cause to the writ applicant as to why its GST registration should not be cancelled.
• The aforesaid show cause notice dated 29.02.2022 was challenged by the writ applicant before the Hon’ble High Court in the Special Civil Application No. 6008 of 2022, where in this Hon’ble Court vide its order dated 24.03.2022 ‘quashed and set aside the show cause notice considering it vague and bereft of any material particulars and information, with liberty to issue a fresh show cause notice containing all necessary information and details for the purpose of effectively responding the same’.
• The Hon’ble Court taking note of its order dated 24.03.2022 observed that the Respondent No. 2 was expected to issue a fresh show cause notice as per the order of this Court, however he proceeded to pass an order dated 29.03.2022 cancelling the registration which on the face of it as vague as anything.
• That against the aforesaid cancellation of registration order dated 29.03.2022 the writ applicant was asked to file an application for revocation of cancellation of registration and the same was complied with by the writ applicant, however the respondent No. 2 again passed a vague and absurd order on 05.04.2022 cancelling the registration once again.
• Further the Hon’ble Court found that the respondent No. 2 did not even think for a second before putting his signature on such an order with only question marks and which does not make any sense.
• The Hon’ble Court after considering the submission on the behalf of the writ applicant that, ‘respondent no. 2 should be proceeded for contempt of court’, held that the submission on behalf of the writ applicant if fully justified, However, we are not issuing any notice for contempt today with a warning to the respondent no.2 that henceforth if this court comes across any such vague order or show-cause notice duly signed by him, then that will be his last day in the office.

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