2023 (10) TMI 1345 - HC - GST

GST registration cancellation without reasons violates natural justice principles, HC sets aside improper administrative action

The HC allowed the petition challenging cancellation of GST registration without reasons assigned, finding violation of natural justice principles. The ... Cancellation of GST registration of the petitioner without assigning any reason - violation of principles of natural justice - HELD THAT:- This Court is inclined to allow this petition. While allowing this petition, it is made clear that if the petitioner is liable to pay any tax or penalty, he is required to pay the same in accordance with law. Issues involved: Cancellation of GST registration without assigning any reason.Summary:Issue 1: Cancellation of GST registration without assigning any reason The writ petition was filed against the cancellation of GST registration without any reason provided. The petitioner's counsel argued that a previous judgment by the court had covered the issue, and the petition should be allowed. The respondent's counsel requested the court to consider the facts and circumstances of the case before passing any order. The court noted that the issue had been addressed in a previous judgment and extracted relevant portions from it. The court emphasized that the provisions of the Goods and Services Tax Act should not debar an assessee from obtaining registration or reviving a lapsed/cancelled registration, as it would go against the constitutional rights. The court highlighted that the intention of the government was to facilitate assesses to come back into the GST fold by filing fresh applications for revocation of registration. Keeping assesses out of the GST regime would lead to revenue leakage and defeat the purpose of tax collection. The court allowed the petition, setting aside the impugned order and directing the restoration of the petitioner's GST registration, with a reminder that any tax or penalty owed must be paid in accordance with the law.This judgment emphasizes the importance of allowing assesses to revive their GST registration and integrate back into the GST regime to ensure tax compliance and prevent revenue loss.