Court directs personal hearing for GST registration suspension, stresses procedural fairness.

The court set aside the suspension part of the show cause notice for cancellation of GST registration due to lack of a personal hearing, directing the authority to provide a hearing to the petitioner within three weeks. Emphasizing procedural fairness, the court highlighted the necessity of compliance with statutory requirements, specifically the requirement of a hearing before suspension under the unamended rule. The court refrained from addressing the cancellation issue, leaving it to the appropriate authority for adjudication. The writ petition was disposed of, with the importance of due process and opportunity for a hearing underscored in GST registration and suspension matters.

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Issues:
Challenge to show cause notice for cancellation of GST registration, Lack of personal hearing before suspension, Validity of notices issued, Compliance with statutory requirements, Direction for personal hearing, Disposal of writ petition.

Analysis:
The petitioner challenged a show cause notice dated 2nd December, 2020, for the cancellation of Goods and Service Tax (GST) registration, issued without a personal hearing before the suspension. The petitioner contended that the notice contravened Section 29(2) and rule 21A of the Central Goods and Service Tax Act, 2017 (CGST Act). The respondent admitted the requirement of a hearing before suspension under rule 21A but argued that Section 29 pertained to cancellation, not suspension. The court noted the amendment to rule 21A post the issuance of the notice, emphasizing the necessity of a hearing before suspension under the unamended rule.

The court refrained from delving into the cancellation issue, as it should be adjudicated by the appropriate authority. However, regarding the lack of a personal hearing before suspension, the court deemed the suspension invalid due to non-compliance with the statutory requirement. Consequently, the suspension part of the show cause notice was set aside, and the authority was directed to provide a personal hearing to the petitioner within three weeks, in line with Section 29(2) of the CGST Act. The court instructed the authority to notify the petitioner of the hearing details in advance, with the petitioner's cooperation expected. The authority was empowered to issue a reasoned order if the petitioner failed to participate in the hearing.

As no further issues required adjudication in the writ petition, it was disposed of. The court clarified that since no affidavits were requested, the allegations in the petition were not deemed admitted by the respondents. The judgment highlighted the importance of procedural fairness and adherence to statutory requirements in matters concerning GST registration and suspension, ensuring due process and opportunity for a hearing before adverse actions.

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