2023 (6) TMI 135 - HC - GST

Cancellation of GST registration of petitioner - non-filing of returns for a continuous period of six months - HELD THAT - The order dated 01.12.2020 clearly falls short of the requirement of Article 14 of the Constitution of India. The appellate order dated 30.12.2021 clearly exceeds the power conferred upon the appellate authority as it decides the appeal on the issues which were neither a part of the show-cause notice nor was a consideration when the order dated 01.12.2020 was passed. Both the orders i.e. 01.12.2020 30.12.2021 are set aside - the matter is remanded back to the authority concerned to pass a fresh order after giving an opportunity of hearing to the petitioner in accordance with law.

Summary

Issues involved:
The issues involved in the judgment are challenging the cancellation of GST registration due to failure to file returns, lack of fixing a date and time for hearing in the show-cause notice, dismissal of appeal based on grounds not mentioned in the show-cause notice, violation of Article 14 of the Constitution of India, and exceeding power by the appellate authority.

Cancellation of GST Registration:
The petitioner challenged the order cancelling their GST registration due to alleged non-filing of returns for six months. The petitioner contended that the show-cause notice did not specify a date and time for hearing, and the registration was cancelled without providing any reason. The petitioner submitted proof of filing returns after the appeal was filed, but the appellate authority dismissed the appeal based on grounds not mentioned in the show-cause notice.

Violation of Article 14 - Constitution of India:
The court referred to previous judgments where the issue of non-mentioning of date and place of hearing was considered. The court held that the order cancelling the registration fell short of the requirements of Article 14 of the Constitution of India. The appellate order exceeded the authority's power by deciding the appeal on issues not part of the show-cause notice or considered during the initial cancellation.

Judgment and Remand:
In light of the above, the court set aside both the orders cancelling the registration and dismissing the appeal. The matter was remanded back to the authority to pass a fresh order after providing an opportunity of hearing to the petitioner in accordance with the law. The writ petition was disposed of in these terms.