2025 (3) TMI 480 - HC - GST

Challenge to order passed by the appellate authority under Section 107 of the Central/West Bengal Goods and Services Tax Act 2017 - cancellation of registration of petition - HELD THAT - The original show cause notice for cancellation of registration of the petitioner was issued on the ground that the petitioner s place of business was fictitious. Although the petitioner did not respond to the same however after the order of cancellation was issued the petitioner had filed an application for revocation of the order of cancellation wherein the petitioner had clarified that the petitioner had incorrectly recorded its postal address of its place of business as 122/8/9/3 J. N. Mukherjee Road Howrah though the correct address would be 122/89/3 J. N. Mukherjee Road Howrah. Once such application for revocation was filed the respondents had called upon the petitioner to substantiate its right of legal occupancy of its place of business. Since according to the respondents the petitioner could not produce any valid documents in support of his claim of lawful occupancy of its place of business an order was passed rejecting the application for revocation. The matter is accordingly remanded back to the appellate authority for a fresh decision on merits. While deciding the matter the appellate authority shall verify and carry out physical verification of the petitioner s place of business in accordance with the Rules upon giving due notice to the petitioner. Petition disposed off by way of remand.

Summary

The issues presented and considered in the judgment are as follows:1. Whether the appellate authority's order under Section 107 of the Central/West Bengal Goods and Services Tax Act, 2017, cancelling the petitioner's registration, was valid?2. Whether the rejection of the petitioner's application for revocation of the cancellation of registration was justified?3. Whether the appellate authority's rejection of the petitioner's appeal without addressing the grounds raised was appropriate?Issue-wise detailed analysis:Issue 1:- The petitioner received a show cause notice for cancellation of registration due to discrepancies in the address provided.- The petitioner applied for revocation of the cancellation, claiming an error in the recorded address.- The proper officer rejected the application for revocation based on the petitioner's failure to provide documents supporting lawful occupancy.- The appellate authority upheld the rejection without addressing the grounds raised by the petitioner.- The Court found the appellate authority's order lacking in reasoning and set it aside.- The matter was remanded back to the appellate authority for a fresh decision with proper verification of the petitioner's place of business.Issue 2:- The petitioner's application for revocation was rejected for failure to provide evidence of lawful occupancy.- The petitioner contended that the rejection was unjustified as the grounds for cancellation and rejection were different.- The Court found that the rejection was based on the lack of documentation supporting lawful occupancy.- The appellate authority was directed to allow the petitioner to present all relevant documents to establish legal right to occupy the business premises.Significant holdings:- The appellate authority's decision was set aside for lack of reasoning and failure to address the grounds raised by the petitioner.- The matter was remanded for a fresh decision with proper verification and consideration of all relevant documents.- The appellate authority was directed to expedite the disposal of the appeal within six weeks.Core principles established:- Proper reasoning and consideration of grounds raised are essential in administrative decisions.- Due process requires verification of facts and consideration of evidence before cancellation of registration.- Appellate authorities must provide reasoned decisions addressing all relevant issues raised by the parties.Final determinations on each issue:- The appellate authority's decision was set aside, and the matter was remanded for a fresh decision with proper verification and consideration of all relevant documents.- The appellate authority was directed to expedite the disposal of the appeal within six weeks.