GST registration cancellation quashed for violating natural justice principles and ignoring Supreme Court limitation extension orders

Gauhati HC set aside GST registration cancellation order dated 11.11.2021 and appellate authority's order dated 16.01.2023. The petitioner's GST registration was cancelled without personal notice, violating natural justice principles. The appellate authority failed to consider SC's extension of limitation order when rejecting the revocation appeal filed beyond the statutory 30-day period. HC found the authorities ignored SC precedent regarding limitation extension and remanded the matter back to departmental authority for reconsideration of the revocation prayer, emphasizing revenue interests require the petitioner to remain within GST regime for statutory compliance.

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Issues:
1. Impugning the cancellation of GST registration by the respondent.
2. Allegation of violation of natural justice and GST Act provisions.
3. Dismissal of appeal as time-barred.
4. Failure to consider the period of limitation extension by the Apex Court.
5. Request for revocation of GST registration cancellation.
6. Requirement to pay outstanding statutory dues for revocation.

Detailed Analysis:
1. The writ petition challenges the cancellation of GST registration by the respondent, which was done without prior notice to the petitioner. The petitioner, a business proprietor, asserts that the cancellation order was issued without proper communication and violated natural justice principles and GST Act provisions. The petitioner's livelihood depends on the GST registration, making the cancellation detrimental to the business.

2. The petitioner filed an appeal against the cancellation, which was dismissed as time-barred by the Appellate Authority. The appeal dismissal was based on the failure to file within the prescribed period due to lack of personal notice served on the petitioner. The petitioner argues that the notice was only uploaded on the department's website, leading to a delayed awareness of the cancellation.

3. The court notes that the period for filing the appeal falls within the time frame excluded by the Apex Court's order due to the COVID-19 pandemic. However, the Appellate Authority did not consider this extension of limitation in its decision. The failure to acknowledge the Apex Court's order regarding the extension of limitation led to the dismissal of the appeal.

4. Considering the petitioner's statutory obligations under the GST regime, the court emphasizes the necessity for the departmental authorities to re-evaluate the revocation of the GST registration cancellation. The court asserts its power to intervene and set aside the impugned orders, directing the respondent to reconsider the petitioner's request for revocation in light of the Apex Court's extension of limitation.

5. The court directs the respondent to inform the petitioner of any outstanding statutory dues and mandates the petitioner to deposit them promptly upon notification. Upon payment of the dues, the respondent is instructed to revoke the cancellation of the GST registration, allowing the petitioner to continue business activities in compliance with the CGST Act.

6. In conclusion, the court interferes with the impugned orders, setting them aside and remanding the matter to the departmental authority for re-evaluation. The writ petition is disposed of with the direction for revocation upon payment of outstanding dues, ensuring compliance with statutory obligations under the GST regime.

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