2021 (2) TMI 556 - HC - GST

Cancellation of its GST registration - petitioner has argued that the impugned order has been passed without serving a show cause notice on the petitioner - Principles of natural justice - HELD THAT - Shri Ashish Anand Barnad, learned Deputy Advocate General though sought time to file reply to the writ petition, but considering the fact that this Court had already granted time to the respondents to file reply vide order dated 21.12.2020 and that the show cause notice (Annexure P/1) itself indicates that the petitioner was required to file reply to the show cause notice within seven days whereas he was required to appear before the competent authority within three days and the assertion made by the petitioner that no such show cause notice was ever served upon the petitioner, it is deemed appropriate to remit the matter to the competent authority for considering the same afresh in accordance with law. Appeal allowed by way of remand.

Summary

Issues: Challenge to cancellation of GST registration without proper notice

Analysis:
The petitioner, a firm, filed a writ petition challenging the cancellation of its GST registration with effect from 1.7.2017 by the Assistant Commissioner, Goods & Service Tax. The counsel for the petitioner argued that the cancellation order was issued without serving a show cause notice, despite a notice dated 22.7.2019 being shown as issued. However, the petitioner claimed that the notice was never actually served on them. The notice required the petitioner to furnish a reply within seven working days and appear before the Assistant Commissioner within three days, which the petitioner found contradictory.

The Deputy Advocate General sought time to reply to the petition but the Court, considering previous extensions granted and the discrepancies in the notice issuance, decided to remit the matter back to the Assistant Commissioner for fresh consideration in accordance with the law. Consequently, the impugned cancellation order was set aside, and the petitioner was directed to file a reply to the show-cause notice within fifteen days. Upon receipt of the reply, the Assistant Commissioner was instructed to reconsider and decide the matter within a reasonable time frame.

In conclusion, the petition challenging the cancellation of GST registration without proper notice was disposed of with the directions for the competent authority to review the matter afresh following due process and in accordance with the law.