9911796707
TMI Blog2024 (10) TMI 1389X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner was granted GST registration on 11.07.2017 and amended registration order was also passed on 10.02.2019. Thus, from 2019 onwards the petitioner has been operating his business from the principal place of business as well as from additional place of business. It is now only when some dispute has arisen between the landlord and the petitioner in December 2023 after about 4 years, the respondent has now issued the impugned letter on 20.05.2024 seeking initiation of cancellation proceedings and order has been passed on 10.07.2024 whereby the suspension of GST registration has been issued on the ground mentioning others - at the stage of amending the registration, certificate of registration and for incorporating additional place of business, no proof or consent letter or NOC from the property owner is required to be produced. It is only for the purpose of issuing the registration certificate for the principal place of business that the NOC or consent letter from the property owner along with proof of address is required to be produced. Once the same has been done and the registration certificate has been issued, merely for adding another place of business there is no req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e then the petitioner has been running operation from both the places and is also complying with the GST provisions. In December 2023, the respondents visited at the additional place of business for physical verification on the basis of a complaint filed by the land owner, who wanted the petitioner to vacate the premises. It was alleged that the petitioner is operating business from his land without his consent, hence, committed violation of the GST laws. After the inspection, the complaint was stated to have been dropped. In May 2024, the respondents again visited the additional place of business on the basis of complaint filed by the land owner and demanded no objection from the land owner for operating the business from the said place. 3. A letter was issued by the department on 20.05.2024 seeking initiation of cancellation proceedings as consent letter/NOC from the land owner had not been produced. The petitioner filed response on 08.06.2024 to the impugned letter dated 20.05.2024 pointing out that he was not required to give NOC relating to additional place of business. The respondents have issued the order dated 10.07.2024 suspending the GST registration and also at the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andate could be taken into consideration for cancellation of GST registration and the action of the respondents in cancelling the registration and suspending the registration stating reasons as others is clearly unjustified and illegal. It has been stated that even as on today, the petitioner is running the business from the additional place of business. The petitioner has never evaded any tax liability and is fully complying the GST laws. 7. Learned counsel for the petitioner has relied on judgments in M.B. Trading vs State of Tripura (2023) 10 Centax 232 (Tripura); Shyam Sundar Sita Ram Traders v State of U.P. (2023) 11 Centax 70 (All) and Om Trading vs State of Gujarat (2023) 12 Centax 109 (Guj.). 8. The respondent has filed the written statement. Learned counsel for the respondent submitted that the additional place of business was added by making amendment in the GST registration and at that time O M Agreement with other firm M/s VHV Beverages was placed before the authorities and no agreement with the owner of the property has been placed. 9. Learned counsel for the respondent further submitted that M/s VHV Beverages has not been authorized to sublet the property to the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent not to entertain the writ petition on the ground of availability of alternative remedy. 16. On merits, we find that the petitioner was granted GST registration on 11.07.2017 and amended registration order was also passed on 10.02.2019. Thus, from 2019 onwards the petitioner has been operating his business from the principal place of business as well as from additional place of business. It is now only when some dispute has arisen between the landlord and the petitioner in December 2023 after about 4 years, the respondent has now issued the impugned letter on 20.05.2024 seeking initiation of cancellation proceedings and order has been passed on 10.07.2024 whereby the suspension of GST registration has been issued on the ground mentioning others. 17. For the purpose of adjudication of this case, it would be apposite to notice certain provisions of law: Section 29 of the Central Goods and Services Tax Act, 2017. 29. Cancellation for suspension of registration (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e may be, shall be deemed to be a cancellation of registration under this Act. (5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: PROVIDED that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. Rule 19 of the Central Goods and Services Tax Rules, 2017. 19. Amendment of registration (1) Where there is any change in any of the particulars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing anything contained in sub-rule (1), any particular of the application for registration shall not stand amended with effect from a date earlier than the date of submission of the application in FORM GST REG-14 on the common portal except with the order of the Commissioner for reasons to be recorded in writing and subject to such conditions as the Commissioner may, in the said order, specify.] (2) Where the proper officer is of the opinion that the amendment sought under sub-rule (1) is either not warranted or the documents furnished therewith are incomplete or incorrect, he may, within a period of fifteen working days from the date of the receipt of the application in FORM GST REG-14, serve a notice in FORM GST REG-03, requiring the registered person to show cause, within a period of seven working days of the service of the said notice, as to why the application submitted under sub-rule (1) shall not be rejected. (3) The registered person shall furnish a reply to the notice to show cause, issued under sub-rule (2), in FORM GST REG-04, within a period of seven working days from the date of the service of the said notice. (4) Where the reply furnished under sub-rule (3) is found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation of registration under rule 22. (2) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29 or under rule 21, he may suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration under rule 22. [(2A) Where,- (a) a comparison of the returns furnished by a registered person under section 39 with the details of outward supplies furnished in FORM GSTR-1 or the details of inward supplies derived based on the details of outward supplies furnished by his suppliers in their FORM GSTR-1, or such other analysis, as may be carried out on the recommendations of the Council, show that there are significant differences or anomalies indicating contravention of the provisions of the Act or the rules made thereunder, leading to cancellation of registration of the said person, or (b) there is a contravention of the provisions of rule 10A by the registered person, the registration of such person shall be suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal, or by sending a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of suspension and the procedure specified therein shall apply. Thus, at the stage of amending the registration, certificate of registration and for incorporating additional place of business, no proof or consent letter or NOC from the property owner is required to be produced. 18. We also noticed that as per Section 29 (2) of the Act, there are 4 grounds for cancellation. As per the respondent, the petitioner has contravened Section 29 (2)(a) of the GST Act inasmuch as it is alleged that registered person has contravened the provisions of the Act and the Rules made thereunder. However, we find that the contention raised by the respondents is wholly misconceived. There is no provision under Rule 8 of the GST Rules to submit NOC or consent letter from the property owner along with proof of address at the stage of adding additional place of business. In other words, it is only for the purpose of issuing the registration certificate for the principal place of business that the NOC or consent letter from the property owner along with proof of address is required to be produced. Once the same has been done and the registration certificate has been issued, merely for adding another place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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