Gujarat HC quashes registration cancellation for lack of proper hearing and non-speaking order despite written reply submission

Gujarat HC allowed petition challenging cancellation of registration certificate. The registration was cancelled on grounds that petitioner failed to appear despite submitting written reply and receiving no hearing opportunity. Court held cancellation was contrary to law as it was a non-speaking order that mechanically cancelled registration without proper reasons. Petitioner had shifted premises from January 2022 and was not intimated of spot visit. Court found retrospective cancellation impermissible given petitioner's explanation of office relocation and subsequent appearance before authorities with required documents.

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Issues:
Challenge to cancellation of registration certificate under GST Act without hearing the petitioner and without providing reasons.

Analysis:
The petitioner challenged the order confirming cancellation of the registration certificate under the GST Act, alleging non-speaking order and lack of opportunity for a hearing. The petitioner's registration was suspended from a specific date, and despite explanations provided during spot visits, the appeal was dismissed. The petitioner sought various reliefs, including quashing the impugned orders and restoring the registration certificate.

The respondent authorities conducted spot visits at the petitioner's business premises, noting the absence of stock, accounts, or infrastructure. The petitioner argued that the cancellation was based on minor procedural issues and lack of notice during the spot visit. The petitioner shifted to new premises, but cancellation was proposed due to non-filing of returns and non-functioning at the old place. The petitioner's responses and attempts for revocation were not considered adequately.

During the proceedings, the petitioner's advocate and the Assistant Government Pleader presented arguments. The Court noted the petitioner's relocation to new premises and the lack of intimation during the spot visit. The cancellation without proper reasons and considering the petitioner's explanations was deemed impermissible. The Court referred to a relevant legal precedent and granted the petition, setting aside the cancellation orders and restoring the petitioner's registration certificate.

In conclusion, the Court allowed the petition, quashed the impugned orders, and restored the petitioner's registration certificate. The judgment emphasized the importance of providing reasons for cancellation and considering the petitioner's circumstances, especially regarding the relocation to new premises. The decision highlighted the need for fair procedures and proper justification in such matters under the GST Act.

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