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2024 (6) TMI 832 - HC - GSTIssues Involved: 1. Cancellation of GST registration. 2. Rejection of application for revocation of cancellation. 3. Rejection of appeal by the appellate authority. 4. Rejection of review application by the appellate authority. 5. Direction to restore GST registration and allow filing of returns. Summary: Issue 1: Cancellation of GST registration The petitioner sought to quash Order No.ZA011122002143S dated 05.11.2022, whereby the GST registration was cancelled by respondent No.3 with effect from 20.09.2022 on the ground that the business premises was found non-functional during field inspection. The court noted that the respondents did not adhere to Rule 25 of the CGST Rules, 2017, which mandates physical verification in the presence of the concerned person. The appellate authority had earlier confirmed the existence of the business premises, making the subsequent cancellation within 19 days questionable. Issue 2: Rejection of application for revocation of cancellation The petitioner's application for revocation of the cancellation order was rejected by respondent No.3 vide Order No.ZA0112220073297 dated 16.12.2022 on the ground of failure to file a reply within the specified time. The court found that the rejection was stereotyped and lacked application of mind. Issue 3: Rejection of appeal by the appellate authority The petitioner's appeal against the cancellation order was rejected by the appellate authority, State Taxes (Appeals-II), Kashmir-Srinagar, vide Order No.234-37/GST/DCST/APP-II dated 18.08.2023, being devoid of merit. The court observed that the respondents had not followed the proper procedure for physical verification as mandated by Rule 25 of the CGST Rules, 2017. Issue 4: Rejection of review application by the appellate authority The petitioner's review application against the appellate authority's order was dismissed vide Order No.383-86/GST-17/Appeal-II dated 17.11.2023. The court found that the respondents had acted with undue promptness and questionable intentions in cancelling the petitioner's registration. Issue 5: Direction to restore GST registration and allow filing of returns The court directed the respondents to restore the GST registration of the petitioner-company retrospectively from 20.09.2022 and allow the filing of annual returns for the financial years 2021-22 and 2022-23 onwards with applicable late fees/interest. The petitioner was also directed to apply afresh for GST registration at the new principal place of business, which should be considered strictly under the rules after fulfilling all terms and conditions. Conclusion: The court quashed and set aside the impugned orders and directed the restoration of the petitioner's GST registration, allowing the filing of returns and fresh application for registration at the new business premises.
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