2023 (9) TMI 1353 - HC - GST

Cancellation of registration granted in favour of the appellant - mismatch of address in the trade license and that of the address given in the partnership deed - response to SCN not filed - HELD THAT - The appellant did not file its response to the show-cause notice. Therefore, the authority cannot be faulted for proceeding ex parte. Nevertheless, while doing so, the authority ought to have informed the appellant and fixed the date for personal hearing after which he could have taken action. This being a mandate under Rule 24(3) of the said Rules, the same cannot be bypassed. The matter should be relegated back to the authority namely, the Commercial Tax Officer having jurisdiction to enable the appellant to file its response to the allegation in the show-cause notice and the authority shall afford an opportunity of personal hearing to the authorised representative of the appellant and thereafter proceed to decide the matter on merits and in accordance with law. The writ petition are allowed to the extent by setting aside the order of cancellation of the provisional registration dated 30th January, 2018 and the matter stands remanded to the Commercial Tax Officer having jurisdiction.

Summary

Issues involved:
The challenge in the writ petition is to a cancellation of registration granted to the appellant by the respondent authorities due to a mismatch of address in the trade license and partnership deed.

Judgment Details:

Issue 1: Cancellation of Registration
The appellant did not file a response to the show-cause notice, leading to the cancellation of registration. The Court acknowledged that the authority proceeded ex parte as a result. However, it was noted that the authority should have informed the appellant and fixed a date for a personal hearing before taking action, as mandated by Rule 24(3) of the Central Goods and Services Tax Rules, 2017. The Court held that the matter should be sent back to the Commercial Tax Officer for the appellant to file a response and be given an opportunity for a personal hearing before a decision is made on the cancellation of registration.

Issue 2: Compliance and Restoration of Registration
The appellant expressed readiness to pay taxes and requested permission to file returns. The Court emphasized that if the appellant can resolve the mismatch issue and there are no other legal obstacles, the cancellation of provisional registration can be reversed, allowing the appellant to file returns and fulfill tax obligations. Consequently, the Court allowed the appeal and writ petition, setting aside the cancellation order and remanding the matter to the Commercial Tax Officer for further proceedings.

Conclusion:
The Court directed the appellant to submit a response to the show-cause notice within 15 days and mandated a personal hearing before a decision is made. The authority was instructed to keep further proceedings on hold until a decision is reached in accordance with the Court's directions. The judgment concluded without imposing any costs, emphasizing the need for prompt issuance of a certified copy of the order upon request by the parties.