2023 (11) TMI 1060 - HC - GST

Principles of natural justice - cancellation of GST registration of petitioner - cancellation without issuance of any SCN or without affording the petitioner, any opportunity to be heard - HELD THAT - According to the petitioner, it did not receive the SCN. However, even if the respondent s contention is accepted that a SCN, a copy of which is handed over, was, issued to the petitioner, the same would be of little assistance to the respondent because the SCN does not mention any time or date for personal hearing. Thus, the petitioner was not afforded a hearing to contest the SCN. The impugned order cancelling the petitioner s registration is void as it has been passed in violation of the principles of natural justice - the impugned order is not informed by reason. It does not set out any ground for cancelling the petitioner s GST registration. Thus, said order cannot be sustained. It is considered apposite to direct that the petitioner s GST registration be restored forthwith. The petitioner shall also comply with the statutory provisions by filing the returns in accordance with law. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment include exemption applications, placing amended memo of parties on record, and a petition for interim relief regarding the cancellation of GST registration without due process.

Exemption Application (CM APPL. 57521/2023):
The court allowed exemptions subject to all just exceptions, and the application was disposed of.

Amended Memo of Parties (CM APPL. 59782/2023):
The petitioner filed the amended memo of parties, which was taken on record. As a result, the counsel for the Central authorities was not required to appear as the petitioner's grievance was against the State authorities.

Petition for Interim Relief (W.P.(C) 14494/2023 & CM APPL. 57520/2023):
The petitioner, an Association of Persons, sought directions to revoke the cancellation of its GST registration. The petitioner claimed that the registration was canceled without a Show Cause Notice (SCN) or an opportunity to be heard. The petitioner was formed to execute a contract for conducting traffic surveys on National Highways, and after receiving an arbitral award, it was required to discharge GST liabilities. The respondent authorities canceled the registration citing the filing of zero returns and suspended it without providing a proper reason. The court found the cancellation void due to a lack of natural justice and directed the restoration of the petitioner's GST registration, with a requirement to comply with statutory provisions for filing returns. The order did not prevent further steps by GST authorities if statutory compliance issues arise.