GST Registration Cancellation Overturned: Business Existence Confirmed, Order Invalidated Due to Procedural Irregularities HC found the GST registration cancellation order invalid. The cancellation initially cited non-existence, but later changed to non-filing of returns ...
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GST Registration Cancellation Overturned: Business Existence Confirmed, Order Invalidated Due to Procedural Irregularities
HC found the GST registration cancellation order invalid. The cancellation initially cited non-existence, but later changed to non-filing of returns without proper notice. Physical verification confirmed the business's existence. The court set aside the cancellation order, directing restoration of registration while allowing authorities to pursue legal remedies under CGST Act through appropriate proceedings.
Issues involved: Impugning an order cancelling GST registration based on non-existence and failure to file returns.
Details of the judgment:
1. The petitioner challenged an order cancelling their GST registration, citing non-existence as the reason. The petitioner was asked to respond to a show cause notice within seven days, and their registration was suspended. Subsequent inspection found the petitioner non-existent at the principal place of business. However, the reason for cancellation was later changed to failure to file mandatory GST returns under the CGST Act, which was not mentioned in the original show cause notice.
2. A physical verification later confirmed the existence of the petitioner at the principal place of business. The court held that the cancellation of the GST registration based on non-existence cannot be upheld as it violated the principles of natural justice since the petitioner was not given notice regarding the failure to file returns.
3. The Revenue pointed out other defaults by the petitioner under the CGST Act, such as non-filing of returns and outstanding demands. However, the court deemed it inappropriate to address these issues in the current petition. A demand cum show cause notice was issued separately under Section 73 of the CGST Act for these matters. The court set aside the order cancelling the GST registration and directed the authorities to restore it.
4. The court clarified that while the authorities are not barred from taking further adverse steps against the petitioner in accordance with the law, the cancellation of the GST registration on the grounds stated in the impugned order was not justified and was therefore set aside.
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