2022 (5) TMI 344 - HC - GST

Cancellation of GST registration of petitioner - default in filing of returns - Rule 68 of the Central Goods and Services Tax Rules, 2017 - HELD THAT - It is admitted by the learned Standing Counsel for the State that in fact, no notice, as envisaged in Rule 68 of the Rules, was issued, rather a postal notice (Annexure No. 2 to the writ petition) was sent - It is a settled principle of law that if enactment or legislation prescribes a particular procedure to conduct business affairs, then it has to be followed. In this case, impugned order has been passed without issuing electronic notice to the petitioner but by issuing registered postal notice. The writ petition is allowed.

Summary

Issues:

1. Validity of order dated 26.06.2021 passed by respondent no. 2
2. Validity of order dated 28.09.2019 passed by respondent no. 1
3. Compliance with Rule 68 of the Central Goods and Services Tax Rules, 2017

Analysis:

1. The petitioner, a GST registration holder, defaulted in filing returns leading to a show cause notice and subsequent order. The petitioner challenged the orders dated 26.06.2021 and 28.09.2019. The High Court noted that Rule 68 of the CGST Rules mandates electronic notice issuance to non-filers. However, the State admitted to sending a postal notice instead of the required electronic notice as per Rule 68.

2. The High Court emphasized the importance of following prescribed procedures in legislative enactments. It ruled that passing orders without adhering to the specified procedure is impermissible. In this case, the impugned orders were issued without the electronic notice required by Rule 68, violating the statutory provision.

3. Consequently, the High Court allowed the writ petition, quashed the orders dated 26.06.2021 and 28.09.2019, and directed the concerned Authority to comply with Rule 68. The Court instructed a reconsideration of the petitioner's case in accordance with the law, emphasizing the necessity of following statutory procedures for fair adjudication.

This comprehensive analysis covers the issues of validity of orders, compliance with statutory rules, and the Court's direction for reconsideration based on proper adherence to procedural requirements.