2024 (2) TMI 361 - HC - GST

Cancellation of GST registration of petitioner - non-filing of the return for six months - HELD THAT - The petitioner is also entitled for the benefit of the order passed by this Court in (Chandra Sarin Vs. Union of India) 2022 (9) TMI 1047 - ALLAHABAD HIGH COURT . In the said judgment, the Court has held that the impugned order does not assign any reason whatsoever for cancelling registration of the petitioner and is passed only on the ground that reply to the show cause notice is not given. The non-submission of reply to the show cause cannot be a ground for cancellation of the registration. The orders dated 17.03.2023 is set aside and the petitioner is permitted to appear before the respondent along with the reply to show cause notice and the certified copy of this order as well as the copy of the judgment passed in Chandra Sarin, within three weeks from today - petition allowed.

Summary

Issues involved:
The cancellation of GST registration due to non-filing of returns and failure to respond to show cause notice.

Cancellation of GST Registration:
The petitioner, an individual proprietorship providing towing services, had their GST registration cancelled for not filing returns. The petitioner claimed they did not receive the show cause notice and thus could not respond in time. The petitioner argued that the cancellation without a proper reason violated their rights. Referring to a previous case, the Court held that cancellation solely for non-submission of reply is unjustified. The Court set aside the cancellation order and directed the petitioner to submit a reply within three weeks for a fresh decision.

Violation of Rights:
The petitioner contended that their right to be heard was not respected during the cancellation process. Citing a previous judgment, the petitioner argued that the cancellation lacked proper reasoning and failed to meet constitutional standards. The Court agreed with the petitioner's argument and granted relief, allowing them to present their case and receive a fresh decision based on due process.

Legal Precedent:
The Court referenced a previous case where cancellation of registration without proper justification was deemed unlawful. By applying the principles established in that case, the Court ruled in favor of the petitioner, emphasizing the importance of providing reasons and following due process before cancelling GST registration. The petitioner was granted the opportunity to rectify the situation by submitting a reply within the specified timeframe.