2020 (7) TMI 612 - HC - GST

Violation of principles of natural justice - cancellation of registration within stipulated time - petitioner did not appear in response to notice dated 06.09.2019 - CBIC order No.1 of 2020 Central Board of Indirect Taxes and Customs in S.O. 2064 (E). dated 25.06.2020 - HELD THAT - The Commercial Taxes and Registration Department of the Government of Tamil Nadu has passed G.O.Ms.No.102 dated 26.06.2020 consequent upon the above CBIT Notification. This Writ Petition is allowed and the petitioner is at liberty to approach the Assessing Authority by the cut-off date provided in the Notification seeking restoration of registration.

Summary

Issues:
Violation of principles of natural justice in the order dated 06.09.2019.

Analysis:
The petitioner appeared before the respondent on 29.08.2019, but the order of rejection dated 06.09.2019 inaccurately stated that the petitioner did not appear in response to a notice dated 06.09.2019. The High Court found this to be a violation of principles of natural justice and quashed the impugned order dated 06.09.2019.

Analysis:
The Central Board of Indirect Taxes and Customs issued Order No.1 of 2020, specifying grounds for cancellation of registration under the Central Goods and Services Tax Act, 2017. The Order highlighted situations for cancellation, such as contravention of Act provisions, non-furnishing of returns, non-commencement of business, or obtaining registration through fraud. It emphasized the requirement for the proper officer to provide an opportunity of being heard before canceling registration.

Analysis:
The Order also addressed the challenges faced by registered persons whose registrations were canceled under specific clauses of section 29 of the Act. Due to difficulties in adhering to the prescribed timelines for revocation applications and appeals, the Central Government issued the Central Goods and Services Tax (Removal of Difficulties) Order, 2020. This Order clarified the calculation of the period for filing revocation applications for affected registered persons, extending the deadline to the later of the date of cancellation order service or 31st August 2020.

Analysis:
In response to the CBIT Notification and the subsequent Order issued by the Central Government, the Commercial Taxes and Registration Department of the Government of Tamil Nadu passed G.O.Ms.No.102 dated 26.06.2020. This action was taken to align with the provisions and clarifications provided at the central level to address the challenges faced by registered persons regarding the cancellation of registrations.

Analysis:
Consequently, the High Court allowed the Writ Petition, granting the petitioner the liberty to approach the Assessing Authority by the specified cut-off date mentioned in the Notification for seeking restoration of registration. The judgment did not impose any costs on the petitioner, and the connected Miscellaneous Petitions were closed as a result of the decision.