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TMI Blog2025 (3) TMI 1334X X X X Extracts X X X X X X X X Extracts X X X X ..... or and one of the partner in a partnership firm by name, M/s Monoranjan Saikia. The petitioner got himself registered as partnership firm 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. 18ACUFS5035R1Z1 w.e.f. 18.05.2018. 3. The petitioner was issued the Show Cause Notice on 14.11.2023 by the Proper Officer asking him to show cause as to why the Registration issued to him under the CGST Act should not be cancelled due to failure on his 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 12.12.2023. 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 appointe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... himself was indolent and 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, 2017 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 notified Facilitation Centre, as specified under sub-section [1] of Section 39 of the CGST Act. 10. As per Section 29 [2] [c], an officer, duly empowered, may cancel the GST registration of a person from such date, including any retrospective date, as he deems fit, where any registered person, has not furnished returns for such co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORM 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-alia prescribed that where in respect of a registered person the registration is liable to be cancelled, the Proper Officer shall issue an order in FORM GST REG-19 with a period of thirty days from the date of the Reply to the Show Cause Notice issued under sub-rule [1], cancelling the registration with effect from a date to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .............
* 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 ..... etitioner 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 05.02.2024, 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 05.02.2024 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 05.02.2024 are looked at, it is found that in the impugned Order, the Proper Officer has not assigned any reason as to why the petitioner's GST Registration has been cancelled. 21. On perusal of the impugned Order, it is evidently clear that the impugned Order is not in conformity with the procedure prescribed in FORM GST REG-19. A speaking order is one wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... about one year from the order of cancellation of registration dated 05.02.2024. 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 05.02.2024 is set aside and quashed. With the setting aside and quashing of the impugned Order dated 05.02.2024, the matter stands reverted back to the stage of issuance of the Show Cause Notice in FORM GST REG-17. 26. It is discernible from a reading of the proviso to sub-rule [4] of Rule 22 of the CGST Rules that if a person who has been served with a Show Cause Notice under Section 29 [2] [c] of the CGST Act is ready and willing to furnish all the pending returns and to make full payment of the tax dues along with a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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