Court quashes GST registration cancellation orders, emphasizes natural justice

The Court set aside the impugned orders for cancellation of GST registration and remanded the matter to the respondent for fresh consideration. The respondent was directed to provide a reasonable opportunity, including a personal hearing, and to pass appropriate orders within three months. The Court emphasized the importance of adhering to principles of natural justice and granting the petitioner a fair chance to present their case.

---

---

Issues:
Violation of principles of natural justice in passing impugned orders without personal hearing as per Section 75(4) of the TNGST Act, 2017.

Analysis:
The petitioner, a distributor for a company, had his GST registration cancelled by the Department. Subsequently, the petitioner applied for revocation of registration upon learning about a government notification. The respondent issued a show-cause notice, but the petitioner was unable to file a reply in time. The respondent passed orders without granting a personal hearing, leading to the filing of writ petitions seeking relief.

The petitioner argued that the impugned orders violated natural justice by not providing a personal hearing as required under Section 75(4) of the TNGST Act, 2017. Citing a relevant judgment, the petitioner contended that failure to submit objections to pre-assessment notices should not deny the right to a personal hearing. The respondent, however, maintained that since the petitioner did not request a personal hearing or file a reply within the stipulated time, the show-cause notices were confirmed lawfully.

Upon hearing both parties, the Court acknowledged that while the petitioner did not adhere to the timelines or request a personal hearing, the principles of natural justice necessitated granting such an opportunity before passing adverse orders. In light of this, the Court set aside the impugned orders and remanded the matter to the respondent for fresh consideration. The respondent was directed to provide a reasonable opportunity, including a personal hearing, and to pass appropriate orders within three months, emphasizing the importance of cooperation from the petitioner.

In conclusion, the Court disposed of the writ petitions with the directive for the respondent to reevaluate the matter in compliance with the principles of natural justice, ensuring a fair opportunity for the petitioner to present their case.

---