2024 (12) TMI 1222 - HC - GST

Cancellation of GST registration of petitioner - devoid of reasons - violation of the principles of natural justice - retrospective cancellaton of registration of petitioner - HELD THAT - The authority has passed an order dated 31.01.2024 retrospectively cancelling the registration of the appellants. It is found from the impugned order dated 01.02.2024 that it is in statutory format being Form GST REG-19. However, the statutory format does not give any reasons as to why the appellants registration has to be cancelled that too with retrospective effect from 18.12.2021 - the assessee would state that they have not received any enclosures along with Form GST REG- 19. As the assessee has submitted a reply to the show cause notice, it is for the authority to consider the reply and to record reasons in writing either accepting the reply or rejecting the contentions of the reply to the show cause notice. In other words, the order should be a speaking order - this appeal is disposed off by setting aside the order dated 01.02.2024 in Form GST REG-19 and remanding the matter back to the Original Authority who is directed to afford an opportunity of personal hearing to the appellants assessee, peruse the document produced and take a fresh decision on merits and in accordance with law. Petition disposed off by way of remand.

Summary

The High Court of Calcutta heard an intra court appeal against the cancellation of registration under the CGST Act, 2017. The court found the cancellation order lacking reasons and violating principles of natural justice. The court set aside the order and remanded the matter back to the Original Authority for a fresh decision after affording the appellants a personal hearing and considering their submissions. The authority was directed to fix a date for the hearing within two weeks of receiving the court's order.