2021 (10) TMI 321 - HC - GST

Cancellation of GST registration certificate - failure to file monthly returns for six months - Section 29 of TN-GST Act - HELD THAT - The impugned order being order for cancellation of GST Registration is set aside solely on the ground that SCN which preceded the same has not been issued in the prescribed template i.e., REG- 17 under Rule 22(1) of TN-GST Rules, as it does not mention the date and time of personal hearing. Though obvious, as the impugned order for cancellation of registration is set aside solely on the aforementioned ground, it is made clear that no view on merits of the matter is expressed in this order. Petition disposed off.

Summary

Issues:
1. Cancellation of GST Certificate due to failure to file monthly returns.
2. Compliance with Section 29 of TN-GST Act.
3. Violation of Natural Justice Principles (NJP) due to improper show cause notice.

Analysis:
1. The writ petitioner, previously registered under the TNGST Act and CST Act, migrated to the GST regime in 2017. The common Registration Certificate issued to the petitioner under TN-GST Act and C-GST Act was referred to as the GST Certificate, dated 02.08.2018.

2. The GST Certificate was canceled on 30.10.2019 due to the petitioner's failure to file monthly returns for six months, under Section 29 of the TN-GST Act. The cancellation was challenged primarily on the grounds of improper procedure.

3. Rule 22(1) of TN-GST Rules provides the procedure for cancellation of registration under Section 29. The petitioner argued that the show cause notice (SCN) issued did not adhere to the prescribed format of form GST REG-17, lacking essential details like the date, month, year, and time for a personal hearing.

4. The petitioner contended that the improper format of the SCN led to a violation of Natural Justice Principles (NJP). The Revenue counsel acknowledged the absence of adherence to the prescribed template in issuing the SCN.

5. The court, considering the procedural lapse in issuing the SCN, set aside the order canceling the GST Registration. The judgment emphasized that the cancellation was solely due to the non-compliance with the prescribed format of the show cause notice and did not express any opinion on the merits of the case.

6. As a result, the respondent was directed to issue a fresh show cause notice in the prescribed format, including the date, time, and venue for a personal hearing, ensuring compliance with the rules. The court instructed the respondent to conclude the proceedings expeditiously, within six weeks from the date of the judgment.