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 registration cancellation was deficient, lacking hearing details. Petitioner claimed non-receipt of both notice and cancellation order. Since there was no outstanding demand against petitioner, HC ordered restoration of GST registration within ten days, noting that Supreme Court orders extending limitation periods would apply to this case. The writ petition was disposed of accordingly.

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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.

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