2023 (4) TMI 426 - HC - GST

Cancellation of GST registration of petitioner - time limitation - petitioner s appeal was dismissed for being beyond the period of limitation - HELD THAT - Neither the Show Cause Notice nor the order dated 06.06.2022 cancelling the petitioner s registration provides any clue as to the reason why the petitioner s registration was cancelled - the purpose of a show cause notice is to enable the noticee to respond to the allegations on the basis of which adverse action is proposed. In the present case, the Show Cause Notice failed to provide any clue as to why the petitioner s registration was proposed to be cancelled. It merely stated that it had reason to believe, that there was a violation of specified provisions of the Act, without referring to those provisions. It is relevant to note that the petitioner had filed an application on 01.04.2022 requesting for cancellation of the GST Registration. In response to the said application, the concerned officer had issued a notice seeking certain additional information/documents/ clarifications. However, the petitioner had not provided the said documents. However, the petitioner s application was rejected. Thus, the impugned order dated 06.06.2022 cancelling the petitioner s registration is not traceable to the petitioner request for cancellation of his registration. This Court considers it apposite to set aside the Show Cause Notice dated 17.05.2022, the order passed by the proper officer dated 06.06.2022 cancelling the petitioner s registration; and the impugned order dated 31.01.2023 - Petition disposed off.

Summary

Issues involved:
The judgment involves the cancellation of GST Registration due to non-compliance and lack of proper reasoning provided in the Show Cause Notice and subsequent orders.

Cancellation of GST Registration:
The petitioner filed a petition challenging the order cancelling its GST Registration, which was dismissed for being beyond the period of limitation. The Show Cause Notice issued to the petitioner did not clearly specify the reasons for cancellation, leading to ambiguity. The order cancelling the registration also lacked proper reasoning, stating that the taxpayer did not attend the personal hearing or respond to queries without providing specific details. The Court found that the petitioner's application for cancellation was rejected despite not being the basis for the registration cancellation order. Therefore, the Court set aside the Show Cause Notice, the order cancelling the registration, and the subsequent order. It allowed the respondents to issue a fresh show cause notice with clear reasons and the petitioner to reapply for cancellation with all necessary materials.

Conclusion:
The Court allowed the exemption subject to exceptions, disposed of the application, issued notice on the petition, and clarified the actions to be taken by both the respondents and the petitioner regarding the cancellation of GST Registration. The petition was disposed of accordingly.