GST Registration Cancellation Overturned: Procedural Fairness Prevails for Electrical and Civil Works Contractor

HC quashed GST registration cancellation order for petitioner engaged in electrical and civil works. The court set aside orders from respondent No.5 and respondent No.4, remanding the matter for fresh consideration within four weeks. Based on precedent cases, the court emphasized procedural fairness and directed a comprehensive review of the original cancellation decision without imposing additional costs.

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Issues:
1. Quashing of order dated 08.04.2020 passed by respondent No.5 and order-in-appeal dated 21.10.2022 passed by respondent No.4.
2. Cancellation of GST registration of the petitioner.
3. Grounds for challenging the cancellation of GST registration.
4. Dismissal of the appeal on the ground of limitation.
5. Remanding the matter back to respondent No.5 for a fresh decision.

Analysis:
The petitioner, engaged in electrical and civil works, sought to quash the order cancelling its GST registration. The petitioner registered under the GST Act in 2018 but faced cancellation due to non-filing of returns. Despite submitting an explanation, respondent No.5 cancelled the registration on 08.04.2020. The petitioner appealed to respondent No.4, whose order-in-appeal on 21.10.2022 dismissed the appeal citing limitation. During the hearing, it was noted that similar cases were remanded for fresh decisions. Referring to past judgments, the Court set aside both orders and remanded the matter to respondent No.5 for a fresh decision within four weeks, ensuring a fair hearing for the petitioner.

The Court's decision was influenced by precedents like Nitya Construction v. Union of India and M/s. Chenna Krishnamacharyulu v. Additional Commissioner. By applying the principle of parity, the Court nullified the previous orders and directed a reconsideration of the cancellation of GST registration. The Court emphasized the importance of following legal procedures and providing opportunities for a fair hearing. The judgment concluded by disposing of the writ petition without imposing any costs, with any pending miscellaneous petitions being dismissed accordingly.

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