GST Registration Cancellation Order Overturned: Procedural Flaws Invalidate Original Decision, Directing Fresh Comprehensive Review

HC set aside the Appellate Authority's order cancelling GST registration due to procedural irregularities. The court found the original order insufficient, as it did not adequately address all grounds of appeal and denied the assessee opportunity to present evidence. The matter was remitted back to the Appellate Authority with instructions to reconsider the case merits within one month, providing partial relief to the petitioner.

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Issues:
Assailing cancellation of registration under GST Act and order by Appellate Authority.

Analysis:
The petitioner, a Firm registered under the Goods and Services Tax Act, challenged the cancellation of its registration and the order by the Appellate Authority. The petitioner had been filing returns regularly from July 2017 to November 2020. A show cause notice was issued on 10.02.2021 alleging non-functioning at the principal place of business. The cancellation order was passed on 06.03.2021, which the petitioner appealed. The first Appellate Authority rejected the appeal citing that during a survey on 10.02.2021, the business was not operational at the registered place, and a subsequent rent agreement indicated a change in the business location without notifying the Department. The Standing Counsel argued that the Assessee should have informed the Department about any change in business location.

The High Court observed that the first Appellate Authority's order was insufficient as it failed to address all grounds raised in the appeal. The Court emphasized that before deciding on the merit of the case, all grounds should be considered, and findings recorded. Notably, the Authority did not adequately address the change in business location and failed to provide the Assessee with an opportunity to present relevant evidence. The Court noted that the cancellation of the GST registration significantly impacts the petitioner's business. Despite the Assessee's consistent filing of GST returns, the Authority should have thoroughly examined the change in business location and allowed the Assessee to present relevant information before confirming the cancellation order.

Consequently, the High Court deemed the first Appellate Authority's order unsustainable and set it aside. The matter was remitted back to the Appellate Authority with instructions to reconsider the appeal on its merits, addressing all grounds raised by the Assessee. The Authority was directed to complete this review within one month from receiving a certified copy of the Court's order. As a result, the writ petition was partly allowed, providing relief to the petitioner in challenging the cancellation of their GST registration.

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