2020 (2) TMI 853 - HC - GST

Cancellation of registration of petitioner - CGST Act - business not conducted at the Place of Business mentioned in the registration profile - HELD THAT - The impugned order dated 1 January 2020 cancelling the registration of the Petitioner is set aside and the proceedings are restored to the stage of issuance of show cause notice. The Petitioner will appear before the State Tax Officer as on the date specified by the State Tax Officer. Petition disposed off.

Summary

Issues:
Challenge to cancellation of registration under the Central Goods and Services Tax Act, 2017 based on failure to reply to show cause notice.

Analysis:
The petitioner challenged the order dated 1 January 2020 cancelling their registration under the Central Goods and Services Tax Act, 2017. The show cause notice issued to the petitioner on 28 December 2019 highlighted discrepancies between the filed returns and the actual business activities, questioning the validity of the registration. The petitioner was directed to appear before the State Tax Officer and provide a reply by 31 December 2019. However, the impugned order of 1 January 2020 stated that no reply was received from the petitioner, leading to the cancellation of registration.

The petitioner, through their Senior Advocate, argued that a comprehensive reply dated 24 December 2019 was submitted on 30 December 2019, prior to the deadline specified in the show cause notice. The court noted the discrepancy between the petitioner's submission date and the assertion in the impugned order that no reply was filed. Upon verification of the submission date by the concerned office, it was evident that the impugned order was passed without considering the petitioner's response, necessitating the setting aside of the order and restoration of proceedings to the show cause notice stage.

Consequently, the High Court set aside the order cancelling the petitioner's registration and directed the proceedings to resume from the issuance of the show cause notice. The petitioner was instructed to appear before the State Tax Officer as per the specified date. The court clarified that the order was overturned solely on the grounds of the failure to consider the petitioner's reply, emphasizing that the proceedings would continue based on their merits. Additionally, the petitioner was reminded of their right to file returns in accordance with the law.

In conclusion, the Writ Petition challenging the cancellation of registration under the Central Goods and Services Tax Act, 2017 was disposed of by the High Court, with the impugned order being set aside due to the failure to consider the petitioner's timely reply, and the proceedings were directed to proceed from the show cause notice stage.