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2025 (1) TMI 256 - HC - GSTSuspension of GST registration of petiitoner - non-consideration of reply - Violation of principles of natural jusice - HELD THAT - Admittedly, the petitioner is a registered dealer under the provisions of GST. The respondent has initiated an enquiry into certain alleged irregularities committed by the petitioner. The petitioner has replied to the said show cause notice. Under the said circumstances, it would be appropriate for the respondent to consider the reply of the petitioner and thereafter pass suitable orders in accordance with law and the act of respondent in suspending the GST registration of the petitioner pending enquiry would be too harsh on the petitioner as he would not be in the position to conduct his business and the enquiry may take some time. The respondent is hereby directed to revoke the suspension of the GST registration of the petitioner which has been done as per show cause notice dated 14.10.2024. Petition disposed off.
In the case before the Karnataka High Court, presided over by Hon'ble Mr. Justice M.I. Arun, the petitioner, a registered dealer under the Karnataka Goods and Services Act/Central Goods and Services Act, 2017, challenged a show cause notice issued by the respondent for the cancellation of his GST registration. The notice, dated 14.10.2024, cited Rule 21(b), alleging that the petitioner issued invoices without the supply of goods or services, thus violating the Act.
The petitioner contended that he had appeared before the respondent, submitted a reply, and demonstrated compliance with GST requirements. Despite this, his GST registration was suspended effective from the date of the notice, hindering his business operations. The court found the suspension of GST registration pending inquiry to be excessively harsh, as it impeded the petitioner's ability to conduct business. The court ordered the respondent to revoke the suspension immediately but allowed the respondent to make a decision regarding the cancellation or further suspension of the registration after considering the petitioner's reply, in accordance with the law. The writ petition was disposed of with these directives.
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