2024 (12) TMI 994 - HC - GST

Challenge to impugned order - contravention of provisions of the CGST/TNGST Act, particularly, Section 132(1)(b) of the CGST/TNGST Act - cancellation of registration of petitioner - violation of principles of natural justice - HELD THAT - The petitioner company is entitled to vent out its grievances against the impugned order before the GST Tribunal in terms of Section 112 of the Tamil Nadu Goods and Services Tax Act, 2017. However, as on date, the GST Tribunal is yet to be constituted. Since the petitioner has no other alternate remedy as on date, this writ petition is maintainable. Hence, this writ petition is taken up on merits and disposed of. It appears to be a violation of the principles of natural justice, in as much as, the petitioner was not heard before its registration was cancelled by the 1st respondent vide order dated 12.11.2021. However, the fact remains that the petitioner's place of business was visited by the Enforcement Department and it was found that the petitioner had a small space for carrying on the business. There are no reasons to interfere with the impugned order passed by the 2nd respondent. Even, if personal hearing was granted by the 1st respondent, the consequence would have been the same. The impugned order passed by the 2nd respondent is in detail and the same cannot be challenged. Petition dismissed.

Summary

The petitioner challenged an order canceling their GST registration. The High Court dismissed the writ petition, stating that the petitioner can apply for fresh registration. The court found no reason to interfere with the order of cancellation. The petitioner's place of business was found to have limited space for business activities. The court noted that the petitioner facilitated bogus credit to customers. The petitioner can appeal to the GST Tribunal once constituted.