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2025 (4) TMI 423 - HC - GSTCancellation of the petitioner s GST registration - absence of a signboard at the business premises - Violation of principles of natural justice - HELD THAT - This Court is of the opinion that the present writ petition is devoid of merit and is accordingly dismissed as the petitioner s contention regarding the retrospective cancellation of GST registration on the grounds of an unsubstantiated show-cause notice lacks sufficient legal basis. The competent authority exercised its jurisdiction within the framework of the West Bengal Goods and Services Tax Act 2017 and followed due process in issuing the cancellation order. Moreover the respondent authority s rejection of the petitioner s appeal and condonation of delay application does not demonstrate any procedural irregularity or violation of principles of natural justice. The petitioner was afforded multiple opportunities to present its case but failed to produce satisfactory explanations or evidence to justify the continuation of its GST registration. The petitioner s assertion that the verification process was conducted arbitrarily is not borne out by the records. The competent authority has furnished a verification report in compliance with this Court s direction and no procedural lapses have been established that would warrant judicial interference. Conclusion - This Court does not find any grounds for quashing the verification report or directing reinstatement of the petitioner s GST registration. The petitioner has failed to establish any legal or factual infirmity in the actions of the respondent authorities. Petition dismissed.
ISSUES PRESENTED and CONSIDERED
The core legal issues considered by the Court were:
ISSUE-WISE DETAILED ANALYSIS 1. Justification of GST Registration Cancellation The relevant legal framework involved the West Bengal Goods and Services Tax Act, 2017, which governs the registration and cancellation of GST registrations. The Court interpreted the Act to determine whether the cancellation was carried out within the legal framework. The respondent authorities argued that the cancellation was based on the petitioner's failure to conduct business at the registered premises and non-compliance with GST regulations. The Court found that the cancellation was justified as the petitioner failed to provide adequate evidence to counter the claims of non-operation at the registered address. The retrospective cancellation was deemed lawful as it was supported by the findings of the physical verification report. 2. Adherence to Principles of Natural Justice The petitioner contended that the cancellation was done without sufficient notice or opportunity to respond, violating the principles of natural justice. The Court considered whether the petitioner was given adequate opportunities to present its case. It was noted that the petitioner had responded to the show-cause notice and had the opportunity to appeal the cancellation. The Court concluded that the principles of natural justice were not violated, as the petitioner had multiple opportunities to present evidence and arguments but failed to provide satisfactory explanations or evidence. 3. Conduct and Validity of Physical Verification The physical verification conducted on January 17, 2025, was a crucial aspect of the case. The Court examined whether the verification was conducted in accordance with its directions and whether the findings were reliable. The petitioner argued that the verification was arbitrary and lacked evidentiary support. The Court found that the verification was conducted properly by the competent officer, who submitted a detailed report indicating the non-existence of business activities at the registered premises. The Court held that the verification report was valid and supported the cancellation decision. 4. Rejection of Revocation Application The petitioner's application for revocation of the cancellation was rejected based on the findings of the verification report. The Court analyzed whether this rejection was justified. The respondent authorities argued that the revocation was denied due to the petitioner's failure to demonstrate compliance with GST regulations. The Court upheld the rejection, stating that the petitioner did not provide sufficient evidence to justify the continuation of its GST registration. 5. Reliance on Photographic Evidence The petitioner presented photographic evidence to challenge the findings of the verification report, claiming that the business premises were operational. The Court assessed the credibility and sufficiency of this evidence. The Court determined that the photographic evidence was insufficient to counter the detailed verification report, which was based on an on-site inspection. The Court found that the petitioner's evidence lacked substantive weight and did not establish any factual inaccuracies in the verification report. SIGNIFICANT HOLDINGS The Court made several significant holdings:
The Court concluded that there were no grounds for quashing the verification report or directing the reinstatement of the petitioner's GST registration. The writ petition was dismissed, and all pending applications were disposed of without any order as to costs.
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