9911796707
TMI Blog2025 (3) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... d distribution also known as contract logistics business in commercial parlance (GSTIN 09AAACU2488B2ZD). He further submits that on 25.8.2023, a show cause notice was issued to the petitioner in Form GST REG -17 under Rule 22 (1) and sub rule (2A) of Rule 21 A of UP GST Rules 2017 proposing to cancel the registration of the petitioner on the premise that the dealer had contravened Section 25 (2) of GST Act 2017 and thereafter the registration of the petitioner was suspended on 25.8.2023. He submits that in response to the show cause notice, the petitioner has submitted online reply for seeking revocation of the GST registration, but on 5.9.2023, respondent no. 2 passed the order of cancellation of registration in Form REG 19 under Rule 22 (3) of the Rules. Thereafter the petitioner has submitted revocation application on 4.10.2023 explaining the detailed reasons thereof. He submits that respondent no. 2 has served a show cause notice for rejection of revocation application on 5.10.2023 to which detailed reply was submitted by the petitioner on 9.10.2023 however being not satisfied with the same, the revocation application has been rejected vide order dated 11.11.2023; aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arlance (GSTIN 09AAACU2488B2ZD). The record further shows that while issuing the show cause notice for cancellation of registration on 25.8.2023, neither any date has been fixed for submission of reply nor any date was fixed for personal hearing of the petitioner. The authorities have issued a notice without any allegation or proposed evidence against the petitioner showing as to how the violation of Section 25 (2) of the Act has been made by the petitioner which empowers the authorities to cancel the registration of the petitioner. 10. The record further shows that the authorities have further failed to satisfy the test required under Section 29 of the Act which empowers for cancellation of registration. The impugned order does not refer a word satisfying the test as required under Section 29 of the Act thus without there being any violation as prescribed under Section 29 of the Act, the registration of the petitioner has been cancelled. 11. The cancellation of registration is a serious act. In other words, by cancelling the registration, a person looses his opportunity to earn his bread and butter. 12. The record further reveals that while deciding the appeal of the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of business'. The cancellation order does not take into consideration the explanation offered by the petitioner in reply to the show cause notice issued to him. 11. When the order cancelling registration of the petitioner entails adverse civil consequences upon the petitioner, the order must be supported by valid reasons forming basis of passing of the order. No order having adverse civil consequences can be passed without assigning reasons for the same. 12. The Appellate Authority has rejected the petitioner's appeal on the ground that the petitioner has not filed any memo of appeal and the grounds on which he is seeking restoration of registration are not clear. The Appellate Authority ought to have adopted the same yardstick while judging the validity of the impugned cancellation order passed by Assistant Commissioner, which also does not disclose any reason for cancellation of petitioner's registration. The mere mention of two sub-rules, without clarifying as to how those rules are being violated and what is the material to substantiate the allegation of violation of rules, would not give rise to a justified ground for cancellation of the petitioner's regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial training by the quasi-adjudicatory authorities under the GST Act as it merely shows that no satisfactory explanation was received within the prescribed time. 19. The order rejecting the application for revocation of cancellation of registration takes the matter to the height of arbitrariness inasmuch as no reasons are recorded as to why the request for revocation of cancellation of registration could not be accepted and discloses absence of application of mind with regard to the averments contained in the application filed by the petitioner for revocation of cancellation of registration. It is also not clear as to why the request of the petitioner to adjourn the matter because of the marriage of his daughter was not even considered prior to passing of the rejection order dated 15.07.2020. 20. The petitioner in the ground of appeal and in the written argument filed in support of the appeal had extensively stated and produced evidence to support and contend that the commercial activity was being carried out by the petitioner, however, the same have not been touched upon by the Appellate Authority while deciding the appeal. The Appellate Authority has gone on a further tangen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by putting him notice of such documents or materials, which were relied upon while cancelling the registration and after receiving the reply, the order should have been passed. 18. In the present case, the appellate authority has rejected the appeal on the ground that while applying for registration, HSN / SAC code has been disclosed, therefore, business undertaken by the petitioner under two different registrations are one and same cannot be bifurcated into two business verticals. 19. Further, the record shows that the conditions have been prescribed under Rule 21 for cancellation of registration, which have not been followed in the impugned order but only on the basis of reflection of HSN / SAC code in the registration application of the petitioner under the GST, the registration has been cancelled. In other words, the grounds mentioned under Rule 21 of the Act have not been tested by the respondent authorities, which empowers the cancellation of registration. 20. Further, it is not the case of the revenue that the petitioner has obtained the registration by committing any breach of the conditions mentioned under Section 29 (2) read with Rule 21 of the GST Act as well as the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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