GST Registration Cancellation Overturned: Procedural Fairness Prevails, Petitioner Granted Opportunity to Respond and Rectify Concerns HC found in favor of petitioner challenging GST registration cancellation. The court set aside the cancellation order and appellate decision, ruling that ...
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GST Registration Cancellation Overturned: Procedural Fairness Prevails, Petitioner Granted Opportunity to Respond and Rectify Concerns
HC found in favor of petitioner challenging GST registration cancellation. The court set aside the cancellation order and appellate decision, ruling that cancellation without proper notice and opportunity to respond violates natural justice principles. Petitioner was granted three weeks to submit a reply, with respondents directed to issue a fresh order after reviewing the submission.
Issues: Challenge to cancellation of GST registration based on non-submission of GST return leading to cancellation order and subsequent dismissal of appeal on grounds of delay.
Analysis: The petitioner, a sole proprietary engaged in civil construction work, challenged the cancellation of GST registration due to non-filing of GST return. A show cause notice was issued, but the petitioner claimed non-receipt, leading to cancellation. The petitioner's appeal against cancellation was dismissed for delay. The petitioner argued the cancellation order was contradictory as it mentioned both submission and non-submission of the reply to the show cause notice.
The petitioner contended that not being heard before the cancellation order violated principles of natural justice. Citing a previous judgment, the petitioner argued that cancellation solely for non-submission of reply was unjustified. Referring to the judgment in Technosum India Pvt. Ltd. Lucknow case, it was highlighted that cancellation without reason or application of mind violates constitutional principles.
The court agreed with the petitioner's arguments, granting relief based on the precedent set by the Technosum India Pvt. Ltd. Lucknow case. The court set aside the cancellation order and the appellate order, allowing the petitioner to submit a reply to the show cause notice within three weeks. The respondents were directed to pass a fresh order in compliance with the law upon receipt of the reply and court orders.
In conclusion, the court's decision was in favor of the petitioner, emphasizing the importance of providing reasons and following due process before canceling GST registration solely based on non-submission of a reply to a show cause notice.
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