2021 (1) TMI 1011 - HC - GST

Principles of Natural Justice - cancellation of registration - opportunity of personal hearing not provided - HELD THAT - This writ application is disposed off, asking the writ applicant to prefer an application under Section 30 of the CGST Act at the earliest. Once such application is filed, the authority concerned shall pass appropriate order within 3 (three) days in accordance with the statement made by Mr. Gandhi, learned Standing Counsel for the respondents.

Summary

Issues:
1. Cancellation of GST Registration without opportunity of hearing
2. Non-application of mind in issuing show cause notice
3. Proposal for revocation of cancellation under Section 30 of CGST Act

Analysis:
1. The High Court addressed the issue of cancellation of GST Registration without providing an opportunity of hearing to the writ applicant. The Court noted that the impugned order under Section 29 of the GST Act lacked a proper opportunity for the applicant to present their case. The Court prima facie found a lack of application of mind in the show cause notice. Consequently, the Court decided to remit the matter back to the authority to allow the writ applicant a fair hearing. The Court directed the respondents to consider recalling or withdrawing the matter to provide the applicant with a chance to present their case and for a fresh reasoned order to be passed.

2. During further proceedings, the respondent's counsel proposed a solution to resolve the discrepancies in the notice, acknowledging technical issues with the portal at the time. The respondent's counsel suggested that the writ applicant should file an application under Section 30 of the CGST Act for the revocation of the cancellation of registration. It was agreed that upon filing such an application, the concerned authority would issue an appropriate order to recall the impugned order promptly. Based on this proposal, the Court disposed of the writ application, instructing the applicant to file the Section 30 application promptly. The Court mandated that the concerned authority must issue an appropriate order within three days of receiving the application, as per the statement made by the respondent's counsel.

3. The judgment concluded by disposing of the writ application upon acceptance of the proposal for revocation under Section 30 of the CGST Act. The Court's decision aimed to provide a fair opportunity for the writ applicant to address the cancellation of their GST registration and to ensure a prompt resolution to the ongoing litigation. The detailed analysis of the judgment highlights the Court's meticulous consideration of the procedural aspects and the proposed solution to address the issues raised by both parties effectively.