Skip to content

Part-45-One Pager Snapshot to the Latest Cases

-Cancellation of Registration without following Principle of Natural Justice and illegalities at assessment stage cannot be cured by appellate stage

-Writ filed without exhausting statutory remedy and delegation of powers by Commissioner

-Refund cannot be denied as revenue proposes to file an appeal against order of the appellate authority

S.No

Section

Case Subject

Case

Held

Cases Referred

1

Section 29

Cancellation of
Registration
without
following
Principle of
Natural Justice
and illegalities
at assessment
stage cannot be
cured by
appellate stage

Ultra Steel Ward v.
State of Madhya
Pradesh [2023] 151
taxmann.com 285
(Madhya Pradesh

The High Court observed that the SCN did not contain sufficient reasons to enable petitioner to file a reply. By
saying that the registration has been obtained by fraud/wilful misstatement/suppression of facts, is not
sufficient. Such terms need to be supported by reasons and some fundamental supporting material as to why,
how and under what circumstances the registration was obtained. Further, SCN for rejection of application for
revocation of cancellation of registration referred to an application dated 11.02.2022 which was, in fact, a reply
to the SCN for cancellation of registration and, therefore, it appeared to the Court that Revenue has not even
cared to ensure that true facts are reflected from the SCN. The carelessness on the part of the Revenue was
referred to be palpable. The appellate authority while passing the appellate order brushed aside the cogent
ground of violation of principle of natural justice (audi alteram partem). Pertinently, the appellate authority
conducted a physical verification of the premises of assessee. Such physical verification at the appellate stage
in the opinion of the High Court could not validate the illegalities which had crept at the initial stage of show
cause notice.
The proceedings were held to be illegal and revenue was at liberty to proceed by issuing a fresh, proper and
lawful show cause notice to the petitioner-assessee, if they were so advised.

Mohinder Singh Gill and
another Vs. CEC and
others, (1978) 1 SCC 405;
Health Care Medical
Devices Pvt. Ltd. Vs. MP
Public Health Services
Corpn. Ltd. and another,
2021 SCC OnLine MP
3389; Balaji Enterprises
Vs. Principal Additional
Director General, DGGSTI
and Others, 2022 SCC
OnLine Del 3201;

2

Section 83

Writ filed
without
exhausting
statutory
remedy and
delegation of
powers by
Commissioner

S. R. Traders v.
Additional Director
General [2023] 151
taxmann.com 286
(Kerala)

The High Court stated that the petitioner had approached the court without exhausting the statutory remedy
under Rule 159. It is well-settled that the writ jurisdiction was only to be exercised in extra-ordinary
circumstances.
The petitioner had further contended that only Commissioner was invested with the power to pass an order
under Section 83 but respondent stated that by notification, powers have been invested in the Additional
Director General. The High Court negated the contention and held that the respondent was competent to pass
order in view of express delegation of powers read with Sections 3 and 5 of the CGST Act.

M/s. Radha Krishan
Industries v. State of
Himachal Pradesh and
others [AIR 2021 SC 2114]

3

Section 54

Refun cannot be
denied as
revenue
proposes to file
an appeal
against order of
the appellate
authority

Alex Tour and Travel
(P.) Ltd. v.
Asistant
Commissioner,
CGST [2023] 151
taxmann.com 331
(Delhi)

The refund due to the petitioner in pursuance of the order of the appellate authority was not granted on the
ground that the decision of the appellate authority was erroneous and Revenue proposes to file an appeal
against the said decision as and when an appellate tribunal is constituted. The assessing officer also insisted
to file fresh refund application.
The High Court directed to grant the refund and rejected the insistence of Revenue to file fresh refund
application since proceedings emanated from petitioner filing applications for refund which was culminated in
Orders-in-Appeals passed by the appellate authority. Revenue cannot ignore the orders passed by the
appellate authority mainly on the ground that it proposes to file an appeal. Further there was no order passed
by the Court, staying the effect of the Orders-in-Appeal passed by the appellate authority. The respondent was
also taking no steps for securing orders to that effect. In view of the above, the petition was held liable to be
allowed

-