2023 (12) TMI 1395 - HC - GST

Cancellation of petitioner s GST registration - petitioner has not filed returns for a continuous period of six weeks - non-application of mind - violation of principles of natural justice - HELD THAT - It is seen from the impugned order that while the second respondent has referred to the petitioner s purported reply dated 12.12.2022 in the very next sentence the second respondent has also recorded that no reply is filed to the Show Cause Notice. The non-application of mind is obvious and therefore there must be interference quashing the cancellation of the petitioner s GST registration but on terms. The second respondent s impugned order dated 30.12.2022 is quashed but on the condition that the petitioner shall file necessary declarations if not already filed and discharge of dues within the period of four 4 weeks from the date of receipt of a certified copy of this order - Petition allowed.

Summary

In the judgment from the Karnataka High Court, presided by Hon'ble Mr. Justice B M Shyam Prasad, the petitioner challenged the second respondent's order dated 30.12.2022, which cancelled the petitioner's GST registration. The cancellation was based on the petitioner's failure to file returns for six consecutive weeks. The petitioner, represented by Sri K. M. Shivayogi Swamy, argued that returns were filed up to December 2022 by 20.06.2023. However, the second respondent's order inconsistently referenced a purported reply from the petitioner dated 12.12.2022, while also noting no reply was filed to the Show Cause Notice, indicating a "non-application of mind."

The court found this inconsistency warranted interference and quashed the cancellation order, with the condition that the petitioner must file necessary declarations and settle dues within four weeks from receiving a certified copy of the order. The court also noted that if the petitioner defaults, the respondents may initiate lawful actions.