9911796707
TMI Blog2025 (3) TMI 1333X X X X Extracts X X X X X X X X Extracts X X X X ..... business of transportation of goods, she got herself registered as a dealer under the Central Goods and Services Tax [CGST] Act, 2017 ['the CGST Act', for short]/State Goods and Services Tax [SGST] Act, 2017 ['the SGST Act', for short]. It is stated that when the petitioner applied for registration, the petitioner was issued a Registration Certificate in Form GST REG-06 with Registration no. 18ACLPB4659H1ZF w.e.f. 09.10.2018. 3. The petitioner was issued the Show Cause Notice on 11.10.2023 by the Proper Officer asking her to show cause as to why the Registration issued to her under the CGST Act should not be cancelled due to failure on her part to furnish returns for a continuous period of six months in terms of Section 39 of the CGST Act. The petitioner was thereby, asked to furnish a Reply within thirty days from the date of service of the Show Cause Notice. The petitioner was also directed to appear before the Proper Officer at 11-00 hours on 08.11.2023. It was further mentioned that if the petitioner would fail to furnish a Reply within the stipulated date or would fail to appear for personal hearing on the appointed date and time, the case would be decided ex-parte on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing the returns for a continuous period of six months and more was clearly attributable to the petitioner and none else. He has further submitted that the petitioner did not either submit an application for revoction in time nor presented an appeal under Section 107, CGST Act in time and such facts go to demonstrate that the petitioner herself was indolent not vigilant. 8. I have considered the submissions of the learned counsel for the parties and have also gone through the materials brought on record, apart from the relevant provisions of the CGST Act and the CGST Rules, 2017 ['the CGST Rules', for short] on which the learned counsel for the parties have relied on. 9. Section 39 [1] of the CGST Act inter-alia requires a registered person to furnish a return for every calendar month or part thereof, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed. Rule 61[1] of the CGST Rules has prescribed the Form and manner of furnishing of return electronically through the common portal either directly or through a no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice served under sub-rule [1] for contravention of the provisions contained in Clause [b] or Clause [c] of sub-section [2] of section 29, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20. [5] The provisions of sub-rule [3] shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself. 12. Sub-rule [1] of Rule 22 of the CGST Rules has inter-alia prescribed that where the Proper Officer has reasons to believe that the registration of a person is liable to be cancelled under Section 29 of the CGST Act, he is required to issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled. Then, the registered person can furnish, as per sub-rule [2], his Reply to the show cause notice in FORM GST REG-18 within the period specified, that is, within seven working days. 13. Sub-rule [3] of Rule 22 has inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FORM GST REG-19. For ready reference, the contents of Form GST REG-19 are extracted hereinbelow :-
FORM GST REG-19
Reference No................
Date ..............
To
Name
Address
GSTIN/UIN
Application Reference Number [ARN]
Order for Cancellation of Registration
This has reference to show cause notice issued dated ................
* Whereas no reply to the show cause notice has been submitted; and whereas, the undersigned based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason[s]: or
* Whereas reply to the show cause notice has been submitted vide X X X X Extracts X X X X X X X X Extracts X X X X ..... th. These statutory dues are required to be paid by all the assessees, who are registered under the GST regime, mandatorily. Such payments of statutory dues contribute towards the State Exchequer. If an assessee like the petitioner is not included within the GST regime, then any statutory dues that may be required to be deposited by an assessee like the petitioner would not be deposited and properly accounted for and such a situation is, albeit, not in the interest of the revenue. It is pertinent to note that in the Statement Table in the Order dated 19.04.2024, no Central Tax/State Tax/Union Territory Tax/Cess is shown as due. 19. At the same time, cancellation of GST Registration would entail adverse civil consequences to the person affected as due to cancellation of his/her registration under the GST regime, he/she would be outside it and it would be difficult for the person to carry on any business in a valid manner. It is not in doubt that the impugned Order dated 19.04.2024 whereby the petitioner's GST Registration has been cancelled is an order which has the consequence of bringing adverse consequences to the petitioner. 20. When the contents of the impugned Order dated 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is passed without any application of mind. For the afore-stated reasons, the impugned Order dated 19.04.2024 cannot stand the scrutiny of law and is liable to be set aside and quashed. 24. A submission has been made that the writ petition has been preferred with delay as the petitioner has filed the writ petition in February, 2025, that is, after about ten months from the order of cancellation of registration. Although the petitioner has not approached the Court immediately after the order of cancellation of registration, this Court is of the considered view that when the extent of vulnerability of the order of cancellation of registration is due to not meeting the statutory prescription of recording reasons is pitted against the delayed approach, the vulnerability of the order of cancellation of registration would far outweigh the delayed approach because of its likely adverse affect on a registered person like the petitioner. 25. For all the afore-mentioned reasons, the impugned Order dated 19.04.2024 is set aside and quashed. With the setting aside and quashing of the impugned Order dated 19.04.2024, the matter stands reverted back to the stage of issuance of the Show C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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