2023 (6) TMI 287 - HC - GST

Cancellation of GST registration of petitioner - non-filing of more than six consecutive return - HELD THAT - Given the fact that the petitioner has already invoked the statutory remedy of appeal against the aforementioned impugned order of the State Tax Circle-Q Jammu and which appeal is still pending adjudication before the appellate authority of the Deputy Commissioner (Appeal) II Jammu, as has been disclosed in the said order dated 16.03.2023 of deciding the petitioner s representation, we are not inclined to grant indulgence on merits to the case of the petitioner in this writ petition. However, it is deemed proper to direct the appellate authority of the Deputy Commissioner (Appeal) II, Jammu to dispose of the petitioner s pending appeal without further loss of time. Said appellate authority are directed to hear and decide the petitioner s appeal within shortest possible time frame and expect the adjudication preferably within three weeks from the date of receipt of copy of this order to be delivered by the petitioner against a written receipt to the office of the appellate authority - petition disposed off.

Summary

Issues involved:
The issues involved in this case are the delay in decision-making by the authorities under the Goods and Service Tax regime and the cancellation of GST registration without proper opportunity of being heard.

Summary:

Issue 1: Delay in decision-making
The petitioner filed a statutory online appeal before the Deputy Commissioner (Appeal) II due to the cancellation of GST registration. Despite this, the appeal remained undecided, causing the petitioner to approach the High Court with a writ petition. The High Court directed the petitioner to file a detailed representation for reconsideration, which was subsequently disposed of by the State Tax Officer Circle-Q. The State Tax Officer confirmed that due process was followed before the cancellation of GST registration, and the petitioner was given a reasonable opportunity to be heard. The High Court directed the appellate authority to dispose of the pending appeal without further delay.

Issue 2: Cancellation of GST registration without proper opportunity of being heard
The petitioner alleged that the GST registration was cancelled without affording him an opportunity to be heard. However, the State Tax Officer noted that the petitioner admitted to receiving a show cause notice for non-filing of returns and acknowledged not filing the returns as required by law. The State Tax Officer stated that the cancellation was based on due process, including serving a show cause notice and the absence of a reply from the petitioner. The State Tax Officer clarified that they were not competent to revoke the cancellation order on their own and directed the petitioner to follow up with the Appellate Authority for restoration of the GST registration.

Conclusion:
The High Court declined to grant relief in the writ petition, considering the pending appeal before the Deputy Commissioner (Appeal) II. The High Court directed the appellate authority to expedite the adjudication of the petitioner's appeal within three weeks from the date of the court order. The petitioner was instructed to receive a copy of the order and the appellate authority was tasked with providing a copy of the decision to the petitioner as well.