Tax Authority Must Resolve Registration Suspension Quickly, Ensure Fair Hearing and Procedural Compliance Under Section 29 of CGST Act

HC ruled on a CGST Act challenge, finding procedural irregularities in registration suspension. The court directed the tax authority to complete proceedings within three weeks and stayed the registration suspension until the section 29 proceedings conclude, providing relief to the taxpayer against potential commercial disruption.

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Issues involved: Challenge to show cause notice u/s 29 of CGST Act, 2017 and suspension of registration u/s 29(2) and Rule 21A(2) of the CGST Rules, 2017.

Summary:
The petitioner challenged a show cause notice dated 12.10.2023 issued by the Assistant Commissioner/Superintendent Range-34, Division Hapaur, Commissionerate Noida u/s 29 of the CGST Act, 2017. The respondent also suspended the petitioner's registration u/s 29(2) and Rule 21A(2) of the CGST Rules, 2017. The petitioner submitted a reply to the notice but complained of unnecessary delays in the proceedings, causing commercial loss. The counsel argued that the registration was suspended without recording an opinion as required by Rule 21A(2) of the CGST Rules, 2017.

The High Court disposed of the petition directing the Assistant Commissioner/Superintendent to complete the proceedings within three weeks from the date of the order. The suspension of the petitioner's registration shall remain stayed until the proceedings u/s 29 of the CGST Act, 2017 are concluded.

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