GST Registration Cancellation Overturned: Procedural Fairness Mandates Proper Hearing and Right to Respond Under Rule 21 The HC found irregularities in GST registration cancellation, determining that the petitioner was not provided adequate opportunity to contest the ...
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GST Registration Cancellation Overturned: Procedural Fairness Mandates Proper Hearing and Right to Respond Under Rule 21
The HC found irregularities in GST registration cancellation, determining that the petitioner was not provided adequate opportunity to contest the decision. The court quashed the cancellation order, directing the respondent to allow the petitioner to file a reply within two weeks and issue a fresh order after personal hearing, without granting interim registration benefits.
Issues involved: - Cancellation of GST registration without proper opportunity for the petitioner to contest the decision. - Lack of communication of crucial documents and discrepancies in the authority issuing the show cause notice and the cancellation order. - Need for providing a fair opportunity to the petitioner to contest the cancellation of registration.
The petitioner challenged the cancellation of their GST registration, stating unawareness of the show cause notice and lack of opportunity to respond. The petitioner, a registered person under GST laws, received an intimation regarding assessment but was surprised by the cancellation order. The petitioner's counsel argued that crucial documents were not provided, and there were discrepancies in the issuing authorities of the show cause notice and cancellation order.
The Government Advocate contended that the petitioner had participated in the proceedings after receiving the show cause notice, limiting their right to question the Assistant Commissioner's jurisdiction. He emphasized the distinction between proceedings related to the intimation and those concerning registration cancellation. The Advocate also highlighted Section 160(2) of the Tamil Nadu Goods and Services Tax Act, 2017, to support the respondent's position.
The basis for the proposed cancellation was a report indicating non-business activities at the registered place. The cancellation order stated the petitioner did not respond to the show cause notice or appear before the authorities. However, the court noted discrepancies in the records and concluded that the petitioner should have the opportunity to contest the cancellation. Consequently, the court quashed the cancellation order and remanded the matter for reconsideration.
The court directed the respondent to allow the petitioner to file a reply to the show cause notice within two weeks and provide a reasonable opportunity for a personal hearing. A fresh order was to be issued within one month from receiving the petitioner's reply, with a clarification that the petitioner would not benefit from registration in the meantime. The case was disposed of with no costs, and related motions were closed.
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