Court upholds GST registration suspension for non-filing. Petitioner advised to engage with proper officer for expedited resolution.

The court upheld the notice suspending the petitioner's registration for non-filing of returns under the GST Act, citing the statutory authority for cancellation after a hearing opportunity. The court advised the petitioner to engage with the proper officer and expedite the process to address business concerns. The petition was dismissed, but the petitioner was granted the opportunity to hasten proceedings by collaborating with the proper officer, who was instructed to decide on the cancellation notice within three weeks of the petitioner's response.

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Issues:
1. Petitioner challenging the notice for suspension of registration due to failure to file returns.
2. Interpretation of Section 29 of the GST Act 2017 and Rule 22 of the GST and ST Rules 2017.
3. Proper officer's power to cancel registration for non-filing of returns for six months.
4. Validity of the show-cause notice issued under Rule 22(1) of the GST Rules.

Analysis:
The petitioner sought relief to set aside a notice, Ext.P3, suspending their registration due to non-filing of returns amidst the Covid-19 pandemic. The petitioner argued readiness to file returns and pay taxes, emphasizing the adverse impact of the suspension on their business. The respondent, represented by the Government Pleader, justified the notice under Section 29 of the GST Act 2017, empowering cancellation of registration for non-filing of returns for six months. The Government Pleader advised the petitioner to respond to the show-cause notice and approach the proper officer if needed.

Upon reviewing the submissions and documents, the court noted the petitioner's non-filing of returns for six months, in line with Section 29(2) of the GST Act 2017. The court highlighted the statutory provisions empowering the proper officer to cancel registration after providing a hearing opportunity to the registered person. Rule 22 of the GST and ST Rules 2017 mandates a show-cause notice before registration cancellation proceedings. The court found no fault in the proper officer's issuance of the show-cause notice, Ext.P3, to the petitioner.

Addressing the petitioner's concern regarding prolonged proceedings and business losses due to registration suspension, the court directed the petitioner to request preponement of the hearing date from the proper officer. The court dismissed the petition but allowed the petitioner to expedite the proceedings by cooperating with the proper officer. The court instructed the proper officer to decide on the show-cause notice of cancellation within three weeks from the petitioner's appearance, emphasizing cooperation between the parties for a swift resolution.

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