2024 (1) TMI 430 - HC - GST

Cancellation of the petitioner s registration of GST - Appeal filed beyond the condonable delay - HELD THAT - It is evident from the bare reading of sub section (2) and Section 29 of the Act that the registration could be cancelled by appropriate officer on any of the grounds mentioned under sub-section (2) - In the present case the ground of cancellation is that the petitioner filed nil returns continuously for more than six months. Learned counsel for the petitioner submits that since the returns were Nil, the nil returns were filed - Section 29(2) does not contain any such ground for cancelation. In the Rules also there is no such ground for cancellation. In the show cause notice or in the order it is not the case of the respondents that the nil returns were filed incorrectly, contravening any provision of the GST Act or the Rules - the impugned order of cancelation is without jurisdiction and without any valid statutory ground. The same cannot be sustained. Petition allowed.

Summary

Issues involved:
The issues involved in the judgment are the cancellation of registration of GST, discrepancies in the impugned order, validity of grounds for cancellation, jurisdiction of the appellate authority, and the legality of the orders.

Cancellation of Registration of GST:
The petitioner's registration of GST was cancelled on the ground of filing nil returns continuously for more than six months. The appeal against the cancellation was dismissed due to being filed beyond the condonable delay period. The petitioner challenged these orders in a writ petition.

Discrepancies in the Impugned Order:
The impugned order mentioned a reply dated 04.02.2022 from the petitioner, even though the petitioner did not file any response to the show cause notice. The Government Pleader acknowledged that it was a clerical mistake in the order. The cancellation order did not assign any reason for the cancellation, which was a point of contention.

Validity of Grounds for Cancellation:
The petitioner argued that the ground for cancellation, "filing nil returns continuously for more than 6 months," did not fall under any clauses of the Goods and Services Tax Act or the GST Rules. Section 29 of the GST Act and Rule 22 of the GST Rules were examined to determine the validity of the grounds for cancellation.

Jurisdiction of the Appellate Authority:
The Government Pleader contended that the appeal was rightly dismissed due to being filed beyond the condonable delay period. However, the court found that since the initial order of cancellation was without jurisdiction, the appellate order dismissing the appeal could not be sustained.

Legality of the Orders:
The court held that the impugned order of cancellation was without jurisdiction and lacked any valid statutory ground. Therefore, the orders were set aside, with liberty granted to the respondents to initiate fresh proceedings if required by law. The writ petition was allowed with no orders as to costs, and any pending miscellaneous petitions were closed as a result.