2024 (11) TMI 661 - HC - GST

Cancellation of Petitioner s GST registration effective 31 July 2021 - violation of principles of natural justice - HELD THAT - In the peculiar facts of the present case, the Petitioner should be granted an opportunity to contest the Appeal. Admittedly, the Show Cause Notices referred to in the impugned order were issued on 26 August 2022 and 1 December 2022. By this date, the Petitioner s registration had already been cancelled. The Petitioner claims not to have received the Show-Cause Notices, and the service issue is unclear. In any event, the Petitioner s registration has already been cancelled, and this position was reflected even on the department s portal and cannot be ignored. After the order dated 11 October 2021, the department entertained the Petitioner s request for cancellation and cancelled his registration. There is no dispute that factually, the petitioner was not heard before the impugned order was made. Therefore, upon a cumulative consideration of the above factors, we set aside the impugned order dated 24 March 2023 on the grounds of failure of natural justice. The matter is remanded to the Appellate Authority, i.e. the Deputy Commissioner of State Tax, for fresh consideration of the Appeal. The Appeal must now be disposed of following law and on its own merits as expeditiously as possible and in any event on or before 31 December 2024. Appeal disposed off.

Summary

Issues:
Challenge to order cancelling GST registration, Violation of principles of natural justice, Validity of Appeal notice service, Remand for fresh consideration of Appeal

Analysis:

The petitioner challenged the order cancelling their GST registration effective 31 July 2021, which was revoked and restored on 11 November 2021. Subsequently, the petitioner applied for cancellation effective 30 November 2021, which was granted. However, the second Respondent's Appeal against the initial cancellation order was allowed on 24 March 2023, changing the cancellation date ab-initio to 01 July 2021.

The petitioner contended that they were not served notice of the Appeal, and the Show Cause Notices mentioned in the impugned order were issued after the registration had already been cancelled. The petitioner argued a violation of natural justice and fair play. The Respondent argued that notices were served at the address indicated in the cancellation application, denying any breach of natural justice.

The Court found that the petitioner should have the opportunity to contest the Appeal, considering the unclear service issue and the fact that the registration had already been cancelled before the Show Cause Notices were issued. The Court set aside the impugned order on grounds of natural justice failure and remanded the matter to the Appellate Authority for fresh consideration by 31 December 2024.

The petitioner accepted notice in the Appeal and parties were directed to appear before the Appellate Authority on 25 November 2024. Future notices would be served via email to the provided email ID. The Court made the Rule absolute without any cost order, instructing all concerned to act on an authenticated copy of the order.