2024 (4) TMI 152 - HC - GST

Cancellation of GST registration retrospectively - Show Cause Notice does not give any reasons - Petitioner seeking to cancel its registration - HELD THAT - Petitioner had filed an application for revocation of cancellation of registration on the ground Due to non filling of return you have cancelled my GST registration. But reason behind my this delay is my father expired during this period and i also changed my accountant whose delayed my return Pursuant to order we are informed that petitioner had appeared before the Assistant Commissioner on the date and time fixed in support of his application seeking revocation of the cancellation of registration. Learned counsel for respondent submits that certain queries have been raised which have been responded by the petitioner and accordingly no decision on the application for revocation has been taken. Thus this petition is disposed of directing the Proper Officer to decide the application of the petitioner seeking revocation within a period of two weeks from today. Petition is accordingly disposed of in the above terms.

Summary

Issues Involved:
The issues involved in this case are the retrospective cancellation of GST registration and the application for revocation of cancellation of registration.

Retrospective Cancellation of GST Registration:
The petitioner challenged the order cancelling their GST registration retrospectively from 01.03.2023. The Show Cause Notice lacked specific reasons for cancellation, only mentioning failure to furnish returns for six months. The petitioner was not informed of the retrospective cancellation, depriving them of the opportunity to object. The impugned order did not provide reasons for the cancellation, merely referring to the previous notice and stating the effective date of cancellation as 01.03.2023 without justification. The lack of material on record to support the retrospective cancellation was highlighted.

Application for Revocation of Cancellation:
Following the cancellation, the petitioner applied for revocation citing the delay in filing returns due to the death of their father and a change in accountants. The petitioner's counsel explained that the delay was due to the petitioner's absence to perform funeral rites for their father. Subsequently, the petitioner appeared before the Assistant Commissioner to support their application for revocation. The respondent's counsel mentioned that queries were raised and answered by the petitioner, with no decision on the revocation application made yet.

Judgment and Disposition:
The High Court directed the Proper Officer to decide on the petitioner's application for revocation within two weeks. The Court clarified that it did not assess the merits or contentions of either party, preserving all rights and contentions. The petition was disposed of accordingly, emphasizing the need for a timely decision on the revocation application.