2023 (9) TMI 699 - HC - GST

Cancellation of GST registration of petitioner - cancellation on the ground that the Registration has been obtained by means of fraud, wilful misstatement or suppression of facts - HELD THAT - The petitioner filed an appeal against the impugned order before the Appellate Authority. However, the appeal was rejected by an Order-in-Appeal dated 09.06.2023, on the ground of delay. It is submitted that the petitioner s GST registration was cancelled as it was not found to be existing at its principal place of business. However, it is noted that the petitioner had made an application dated 19.08.2021 for change of its registered principal place of business. This application was allowed and the amended certificate of the GST Registration was issued. Admittedly, the concerned officer had inspected the old premises and not the new premises as reflected in the certificate of the GST registration issued on 19.08.2021. The impugned order cancelling the petitioner s GST registration is set aside. The Show Cause Notice suspending the petitioner s registration is also set aside - Petition allowed.

Summary

Issues involved:
The cancellation of GST registration based on a Show Cause Notice lacking clarity and proper grounds. Appeal rejection due to delay. Allegations of non-existence of principal place of business despite a valid change application.

Cancellation of GST Registration:
The petitioner challenged the cancellation of their GST registration through a petition, arguing that the Show Cause Notice and subsequent order lacked clarity and specific grounds for the cancellation. The Show Cause Notice vaguely mentioned fraud, wilful misstatement, and suppression of facts as reasons for cancellation without providing concrete details. The order cancelling the registration with retrospective effect was deemed unreasonable and not adequately justified, leading to the petition being allowed and the cancellation set aside.

Appeal Rejection:
The petitioner's appeal against the cancellation order was rejected by the Appellate Authority citing delay as the reason. However, the primary issue of lack of clarity and proper grounds in the original Show Cause Notice and cancellation order remained unaddressed, ultimately resulting in the cancellation being overturned.

Allegations of Non-Existence of Principal Place of Business:
The respondents alleged that the petitioner's GST registration was cancelled due to non-existence at the principal place of business. Contrary to this claim, the petitioner had applied for a change of the registered principal place of business, which was approved, and an amended certificate was issued. The inspection was conducted at the old premises instead of the updated location, highlighting an administrative error in the cancellation decision. Consequently, the cancellation was set aside, emphasizing the need for clear and valid grounds in such proceedings.

Conclusion:
The High Court allowed the petition, setting aside the cancellation of the petitioner's GST registration and the accompanying Show Cause Notice. The decision was based on the inadequacy of the Show Cause Notice in providing specific reasons for the adverse order, and the lack of clarity in the cancellation order itself. The Court clarified that while the cancellation was overturned, the concerned officers could take necessary steps in compliance with the law. All pending applications were disposed of in light of the judgment.