2024 (11) TMI 103 - HC - GST

Cancellation of GST registration of the petitioner - non-submission of reply to SCN - petitioner could not respond to the SCN issued by the respondents within the stipulated period on account of sickness - HELD THAT - The present petitioner is also entitled for the benefit of the order passed by this Court in Technosum India Pvt. Ltd. Lucknow Vs. Union of India and Others 2022 (9) TMI 1412 - ALLAHABAD HIGH COURT . In the said judgment, the Court has held that the impugned order does not assign any reason whatsoever for cancelling registration of the petitioner and is passed only on the ground that reply to the show cause notice is not given. The non-submission of reply to the show cause notice cannot be a ground for cancellation of the registration. In view thereof, the present petitioner is also entitled for the same relief. The benefit of the order in the above stated case, shall also be made available to the present petitioner - the present petition is allowed.

Summary

Issues:
Challenge to cancellation of GST registration based on non-submission of reply to show cause notice within stipulated period.

Analysis:
The petitioner, a proprietorship firm engaged in business activities, challenged the cancellation of its GST registration through a petition. The cancellation was based on the petitioner's failure to respond to a show cause notice within the specified timeframe due to sickness. The petitioner's appeal against the cancellation was rejected by the appellate authority on grounds of limitation.

The petitioner contended that not being heard before the cancellation of registration violated principles of natural justice. Reference was made to a previous judgment (Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others) where it was held that cancellation solely due to non-submission of reply to a show cause notice is unjustified. The judgment emphasized the importance of providing reasons for administrative decisions to ensure fairness and application of mind.

The court, considering the precedent set by the mentioned judgment, allowed the petition. The orders cancelling the registration and rejecting the appeal were set aside. The petitioner was directed to appear before the respondent with the reply to the show cause notice and copies of the court's order and the referenced judgment within three weeks. The respondent was instructed to reevaluate the matter and issue a fresh order in compliance with the law.

In conclusion, the court granted relief to the petitioner, emphasizing the necessity of providing reasons for administrative decisions and upholding principles of natural justice in cancellation proceedings related to GST registration.