GST Registration Cancellation Overturned: Procedural Fairness Prevails, Petitioner Granted Opportunity to Present Case Effectively

HC set aside GST registration cancellation order due to procedural irregularities. Petitioner successfully challenged cancellation based on lack of proper notice and absence of reasoned decision. The court directed respondent to reconsider registration cancellation after hearing petitioner and reviewing submitted documents within three weeks, emphasizing principles of procedural fairness.

---

---

Issues:
Challenge to cancellation of GST registration due to non-filing of GST return, Failure to submit reply to show cause notice leading to cancellation, Appellate authority's dismissal of appeal on grounds of delay, Entitlement to benefit of previous judgment regarding cancellation of registration without assigning reasons.

Analysis:
The petitioner, a sole proprietary firm engaged in civil work contract business, challenged the cancellation of their GST registration due to non-filing of GST return. The petitioner claimed they did not receive the show cause notice, leading to the cancellation order on 02.06.2021. An appeal against this cancellation was dismissed by the appellate authority citing delay. The petitioner argued that they were not heard before the cancellation order was passed, seeking the benefit of a previous judgment (Writ Tax No.145 of 2022) which held that non-submission of reply to a show cause notice cannot be a ground for cancellation of registration. The judgment emphasized the importance of providing reasons for cancellation orders and the need for application of mind, as highlighted in a similar case (M/s Chandrasen). The petitioner was granted relief based on the principles established in the previous judgment, allowing them to appear before the respondent with the required documents within three weeks for a fresh decision in accordance with the law.

Conclusion:
The High Court allowed the petition, setting aside the orders of cancellation of GST registration and the dismissal of the appeal. The petitioner was directed to appear before the respondent with the necessary documents within three weeks. The judgment emphasized the importance of providing reasons for administrative decisions and ensuring the application of mind in such matters. The petitioner was granted relief based on the principles established in previous judgments, highlighting the significance of procedural fairness and adherence to legal standards in such cases.

---