GST Registration Dispute Resolved: Petitioner Granted Opportunity to Rectify Procedural Non-Compliance and Submit Pending Returns

HC allowed the petition challenging GST registration cancellation. The court remanded the matter back to tax authorities, directing a fresh review of the case with a fair hearing. Petitioner was given two months to submit pending returns and clear tax arrears. The original cancellation order was set aside, providing an opportunity for the firm to rectify procedural non-compliance.

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Issues:
Petition seeking quashing of order cancelling GST registration based on non-filing of returns.

Analysis:
The petitioner, a partnership firm providing horticulture and nursery services, filed a petition under Article 226 seeking to quash the order dated 26.11.2019 by respondent No.1, which cancelled their GST registration due to non-filing of returns. The petitioner was registered under the CGST Act and TGST Act. A showcause notice was issued on 14.11.2019 for not filing all GST returns, to which the petitioner replied on 23.11.2019. However, the reply was not accepted, leading to the cancellation of registration. The petitioner's counsel argued that due to the managing partner's health issues, including a spinal surgery and subsequent amputation of both legs, they could not file an appeal under Section 107 of the CGST Act. The court considered the circumstances and decided to remand the matter back to respondent No.1 for a fresh decision in accordance with the law.

The High Court set aside the order dated 26.11.2019 and directed respondent No.1 to reconsider the petitioner's case regarding the cancellation of GST registration. The court emphasized that respondent No.1 must provide a fair hearing to the petitioner before passing any new order. The court instructed that this process should be completed within two months from the date of receiving the order. Additionally, the petitioner was given the opportunity to submit all pending GST returns and clear any tax arrears as required by the law. The court concluded the writ petition without imposing any costs and closed any related pending miscellaneous petitions.

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