GST Registration Cancellation Overturned: Procedural Errors Invalidate Order, Petitioner Granted Opportunity to Rectify Documentation

HC found GST registration cancellation invalid due to procedural irregularities. The court set aside the cancellation order, directing the petitioner to submit required documents within three weeks. Respondent must issue a fresh order following legal procedures, ensuring fair administrative action and proper hearing rights.

---

---

Issues:
Challenge to cancellation of GST registration based on non-submission of GST return and delay in reply to show cause notice.

Analysis:
The petitioner, a sole proprietor of a firm engaged in motor work, had their GST registration cancelled due to non-filing of GST return and a subsequent show cause notice. The petitioner claimed they did not receive the notice, leading to a delayed response and eventual cancellation of registration. The appellate authority dismissed the appeal citing delay as the reason.

The petitioner argued that the cancellation order was self-contradictory, stating submission and non-submission of reply in the same document. They also contended that not being heard during the cancellation process was a violation of their rights. Reference was made to a previous judgment (Technosum India Pvt. Ltd. Lucknow Vs. Union of India) where the court held that cancellation solely for non-submission of reply was unjustifiable.

Citing the doctrine of merger and the need for reasons in administrative decisions, the petitioner sought judicial review based on the precedent set by another case (M/S Chandrasen, Sarda Nagar, Lucknow vs Union of India). The court agreed with the petitioner's arguments, granting relief similar to the Technosum India Pvt. Ltd. case.

The court allowed the petition, setting aside the cancellation order and the appellate decision. The petitioner was instructed to appear before the respondent with the required documents within three weeks. If the petitioner complied, the respondent was directed to issue a fresh order following legal procedures.

In conclusion, the judgment favored the petitioner, emphasizing the importance of due process and proper reasoning in administrative decisions, especially concerning GST registration cancellations. The court's decision was influenced by previous judgments highlighting the need for valid grounds and fair treatment in such matters.

---