2023 (8) TMI 978 - HC - GST

Cancellation of GST registration of petitioner - Proof of existence of premises for which registration obtained - Non compliance of any specified provisions in the GST Act or the Rules made thereunder - HELD THAT - The impugned order dated 13.10.2022 neither refers to the reply filed by the petitioner nor considers the explanation provided by the petitioner. There is no dispute that the premises where the petitioner claims to have been carrying on his business prior to shifting to new address in July, 2021, was demolished by the Northern Railway Authorities. Although, it is alleged in the counter affidavit that it was demolished many years ago, there is no material on record to establish the same. It is the petitioner s case that the premises had been demolished some time in the year 2021 compelling it to shift to a new place. Neither the impugned show cause notice nor the show-cause notice dated 23.09.2022 can be sustained. Consequently, the orders passed pursuant thereto are liable to be set aside - the impugned show cause notice set aside - petition allowed.

Summary

Issues:
The issues involved in the judgment are the impugning of a show cause notice proposing cancellation of GST registration, rejection of application for revocation of cancellation, discrepancies in GST returns, physical verification of premises, and lack of clarity in show cause notices.

Impugned Show Cause Notice and Cancellation of GST Registration:
The petitioner challenged a show cause notice proposing cancellation of GST registration and the subsequent order cancelling the registration. The petitioner failed to reply or appear before the proper officer, leading to cancellation with retrospective effect from 02.07.2017. The order cited non-existence at the registered place of business as the reason, without mentioning the premises' demolition, which the petitioner claimed. The cancellation was contested based on the shift to a new business location in July 2021.

Application for Revocation and Rejection:
The petitioner sought revocation of the cancellation, submitting supporting documents like Aadhaar card and NOC from the landlord. The application was rejected citing non-existence, lack of appearance for a personal hearing, and failure to submit a specific reply. Discrepancies in the show cause notice and rejection order were noted, with the petitioner's explanation of premises demolition not adequately considered.

Discrepancies in GST Returns and Physical Verification:
Discrepancies in GST returns for 2017-18 and 2018-19 were identified, with notices sent but returned undelivered. The petitioner requested an extension for data submission, which was granted. Physical verification revealed the demolition of the business premises, prompting the issuance of the impugned show cause notice. However, the notice lacked specific details required for a meaningful response.

Decision and Conclusion:
The High Court set aside the impugned show cause notice, rejection notice, cancellation order, and application rejection order. It was ruled that fresh show cause notice could be issued with clear reasons, allowing the petitioner to respond. The court emphasized the need for transparency and proper procedure in such matters, ensuring a fair opportunity for the petitioner to present their case.