2023 (9) TMI 400 - HC - GST

Cancellation of GST registration of petitioner - non-functioning at the principal place of business - failure to produce the necessary documents or appear at the personal hearing - HELD THAT - Mr. Rajeev Aggarwal, learned counsel appearing for the respondents does not seriously dispute that the petitioner s son had visited the office of the Proper Officer on the appointed date and time. In the given circumstances, it is considered apposite to set aside the impugned order and the matter remanded to the Proper Officer to consider it afresh, after affording the petitioner an opportunity to be heard - petition disposed off.

Summary

Issues Involved:
The issues involved in the judgment are the cancellation of GST registration based on allegations of non-functioning at the principal place of business and involvement in paper transactions without movement of goods.

Cancellation of GST Registration based on Non-Functioning at Principal Place of Business:
The petitioner's GST registration was initially proposed to be cancelled due to alleged non-functioning at the principal place of business. The petitioner responded to the Show Cause Notice by explaining her health condition, which prevented her from visiting the office daily. This explanation was accepted, and the Show Cause Notice was dropped. However, a subsequent Show Cause Notice was issued, alleging involvement in paper transactions without movement of goods based on discrepancies in E-way bills submitted. The petitioner was required to provide various documents and appear before the Proper Officer, which she claims to have done, but no one was present at the office on the scheduled date. The petitioner's registration was ultimately cancelled for failure to produce necessary documents or attend the personal hearing.

Violation of Principles of Natural Justice and Remand of the Matter:
The counsel for the respondents did not dispute that the petitioner's son had visited the office on the appointed date. However, there were disputes regarding other communications relied upon by the petitioner. The court held that the petitioner was not afforded a proper opportunity to be heard, leading to a violation of natural justice. Consequently, the impugned order was set aside, and the matter was remanded to the Proper Officer for fresh consideration after providing the petitioner with a fair hearing. The court instructed the Proper Officer to expedite the proceedings and conclude them preferably within four weeks from the judgment date.

Conclusion:
In conclusion, the High Court set aside the impugned order cancelling the petitioner's GST registration and remanded the matter for reconsideration while emphasizing the importance of adhering to principles of natural justice in such proceedings.