GST Registration Cancellation Invalidated Due to Procedural Lapses, Petitioner Given Opportunity to Explain Tax Filing Discrepancies

HC found that GST registration cancellation without proper notice was improper. The court directed petitioner to deposit Rs. 20,00,000 and remitted the case back to tax authorities for review. The Assessment Order was deemed invalid due to procedural irregularities, with an opportunity provided for the petitioner to explain discrepancies in tax filings. Writ Petitions were disposed of without costs.

---

---

Issues Involved:
1. GST registration cancellation leading to inability to file returns.
2. Discrepancy between turnover disclosed in GSTR-01 and ITC claimed in GSTR-3B.
3. Validity of the impugned Assessment Order and recovery notice.
4. Petitioner's request for an opportunity to explain the discrepancy and willingness to deposit a token amount.
5. Failure to file a reply before the respondent due to business closure.

Summary:
The petitioner's GST registration was cancelled, preventing access to the web portal for filing returns. The impugned Assessment Order was issued without prior notice, leading to a discrepancy between turnover and ITC claimed. The petitioner sought an opportunity to explain the discrepancy and offered to deposit a token amount. The respondent argued that the petitioner had access to relevant information on the web portal. The court noted the discrepancy and the petitioner's willingness to deposit a token amount as proof of good faith. The impugned Assessment Order was deemed invalid due to the petitioner's closure of business affecting reply submission. The petitioner was directed to deposit Rs. 20,00,000, with the case remitted back to the respondent for review. Failure to comply would result in automatic revocation of the order. The petitioner was instructed to provide necessary documents to support their entitlement to relief. The Writ Petitions were disposed of with these observations, without costs, and connected petitions were closed.

---