Court quashes GST registration cancellation, emphasizes due process and fairness

The Court allowed the writ application, quashed the impugned order cancelling the GST registration, and remitted the matter to the Commercial Tax Officer. The Officer was directed to issue a show-cause notice, provide a hearing to the applicant, and then decide on the registration cancellation. If deemed necessary, a fresh show-cause notice and order should be issued; otherwise, the original registration should be restored. The Court emphasized due process and fairness, ensuring the applicant's opportunity to present their case.

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Issues:
Challenge to impugned order cancelling GST registration without show-cause notice and lack of details in the order.

Analysis:
The writ applicant sought relief through a writ application under Article 226 of the Constitution of India, requesting the quashing of the impugned order dated 04.06.2020 that cancelled the registration. The applicant also sought a direction to recall the cancellation order and restore the registration, along with a stay on the operation of the cancellation order. The primary issue revolved around the absence of a show-cause notice in Form GST REG-17 and the lack of details in the cancellation order. The Court noted that the applicant was not given an opportunity to present their case before the registration was cancelled.

During the hearing, it was argued that the impugned order lacked material particulars and was issued without following the due process of issuing a show-cause notice. The learned AGP representing the State Respondents conceded that the order was deficient in these aspects. Consequently, the Court allowed the writ application, quashed the impugned order dated 04.06.2020, and remitted the matter to the Commercial Tax Officer. The Officer was directed to issue a show-cause notice in Form GST REG-17, provide a hearing to the applicant, and then make a decision on the cancellation of registration. The Court emphasized that if the Officer deems fit to cancel the registration, a fresh show-cause notice and order should be issued; otherwise, the original registration should be restored in accordance with the law. The Court disposed of the writ application accordingly, ensuring due process and fairness in the proceedings.

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