2022 (4) TMI 601 - HC - GST

GST Registration Restored After Court Finds Show Cause Notice Deficient and Limitation Period Extended by Supreme Court Orders

The HC set aside the Appellate Authority's order that dismissed petitioner's appeal on limitation grounds. The Court found the show cause notice for GST ... Cancellation of GST registration - applicability of time limitation - HELD THAT:- The show cause notice, which is, dated 02.12.2019, gives no details as to the date and time on which the petitioner’s authorized representative was to present himself for a personal hearing, before the adjudicating authority. This is apart from the fact that Mr Rai says that neither the show cause notice dated 02.12.2019, nor the subsequent order cancelling the petitioner’s GST registration was received by the petitioner - the record shows that the order cancelling the petitioner’s GST registration was passed, on 11.12.2019. A close perusal of the order dated 11.12.2019, whereby the petitioner’s registration was cancelled, shows [as also submitted by Mr Rai] that, in fact, there was no demand outstanding qua the petitioner - the impugned order dated 26.10.2021, passed by the appellate authority, and the order cancelling the petitioner’s GST registration dated 11.12.2019, are set aside. The petitioner’s GST registration will be restored, subject to the respondents - Petition disposed off. Issues:Challenging order of Appellate Authority on grounds of limitation, Deficiency in show cause notice, Cancellation of GST registration without outstanding demand.Analysis:The writ petition was filed against the order dated 26.10.2021, passed by the Appellate Authority, which dismissed the appeal on the ground of limitation. The petitioner argued that the appeal should not have been dismissed based on limitation, citing a Supreme Court order dated 27.04.2021, and a Circular issued by the Central Board of Indirect Taxes and Customs on 20.07.2021. The respondent agreed that the Supreme Court order would apply. The High Court noted that the show cause notice issued to the petitioner lacked material particulars, such as the date and time for a personal hearing, and that the petitioner claimed not to have received the notice or the subsequent order canceling their GST registration. The order canceling the registration was passed on 11.12.2019, but there was no outstanding demand against the petitioner.The High Court set aside the impugned order of the Appellate Authority and the order canceling the petitioner's GST registration. The petitioner's GST registration was ordered to be restored, subject to the respondents taking necessary steps in accordance with the law. The respondents were directed to restore the registration within ten days from the receipt of the judgment. The parties were instructed to act based on the digitally signed copy of the judgment. The writ was disposed of accordingly, and any pending applications were closed.