2022 (4) TMI 48 - HC - GST

GST Registration Cancellation Set Aside Due to Natural Justice Violation and Denial of Document Access

The HC set aside the order cancelling petitioner's GST registration certificate, finding a violation of natural justice principles as petitioner was ... Cancellation of registration of GST certificate of the petitioner - the documents or records relied upon by the respondent concerned, were never provided to the petitioner to enable the petitioner to contradict the said report - violation of principles of natural justice - HELD THAT:- The writ petition is disposed off by setting aside the impugned order dated 4th September, 2020 being Annexure P-10 to the writ petition with the direction upon the Deputy Commissioner of State Tax, Shibpur/respondent No.1 to consider afresh and dispose of the petitioner’s application for revocation of cancellation of its registration in accordance with law and by passing a reasoned and speaking order after giving opportunity of hearing to the petitioner or its authorized representative within four weeks from the date of communication of this order and also to provide the documents to the petitioner to be relied on by the respondent, for the purpose of the final adjudication of the said application. Application disposed off. Issues:Challenge against cancellation of GST registration certificate based on violation of natural justice principles.Analysis:The petitioner contested the cancellation of their GST certificate through a series of objections and replies, culminating in the rejection of their application for revocation. The petitioner's main grievance was the lack of access to documents or records relied upon by the respondent authority, which prevented them from effectively countering the grounds for cancellation. The court acknowledged this violation of natural justice and set aside the impugned order dated 4th September, 2020. The Deputy Commissioner of State Tax was directed to reconsider the petitioner's application, provide necessary documents, and issue a reasoned order after granting a hearing to the petitioner or their representative within four weeks.The judgment emphasized that the court did not delve into the merits of the case, highlighting the importance of adherence to legal procedures by the concerned authorities. The order aimed to ensure a fair and just process for the petitioner in the reconsideration of their application for revocation of the GST registration cancellation. The decision to dispose of the writ petition was made with the expectation that the respondents would act in strict conformity with the law during the reevaluation process.In conclusion, the High Court's ruling addressed the procedural irregularities in the cancellation of the petitioner's GST registration certificate, emphasizing the significance of upholding principles of natural justice in administrative actions. The judgment sought to remedy the lack of access to crucial documents faced by the petitioner, directing the authorities to conduct a fresh assessment in a fair and transparent manner, providing the petitioner with the opportunity to present their case effectively.