2023 (9) TMI 1648 - HC - GST

GST Registration Restored: Cancellation Order Overturned Due to Lack of Justifiable Reasons and Procedural Defects

HC set aside GST registration cancellation order against petitioner for non-filing of returns. Court found the cancellation lacked justifiable reasons and ... Cancellation of GST Registration of the Petitioner - non-filing of returns under Section 39 of the Central Goods and Services Tax Act, 2017 - impugned order is devoid of any justifiable reasons - non-application of mind - violation of principles of natural justice - HELD THAT:- A perusal of the impugned order dated 28.02.2023 would show that the said order is passed by a quasi judicial authority. The effect of the said order would be that in absence of a registration, the Petitioner cannot carry out his business. Therefore, the effect of the said impugned order would entail civil consequences. If this Court peruses the order, it is shocking that the Respondent No. 4 had cancelled the registration by giving a reason that the “Registration is cancelled”. This clearly shows a total non-application of mind apart from the fact that the impugned order is devoid of any justifiable reasons. Accordingly, this Court therefore sets aside the said impugned order dated 28.02.2023 thereby restoring the status back to the date on which the Show Cause notice dated 15.01.2023 was issued. Petition disposed off. The Gauhati High Court, presided over by Honourable Mr. Justice Devashis Baruah, addressed a writ petition challenging the cancellation of the Petitioner's GST registration by Respondent No. 4, as per the order dated 28.02.2023. The Petitioner, represented by Mr. R. S. Mishra, faced cancellation due to failure to file returns under Section 39 of the Central Goods and Services Tax Act, 2017, attributed to financial hardship. Although a Show Cause notice was issued on 15.01.2023, the Petitioner's response is not documented.The Court criticized the Respondent's order for lacking 'justifiable reasons' and demonstrating 'a total non-application of mind.' The cancellation, which had civil consequences by impeding the Petitioner's business operations, was deemed unjustified. Consequently, the Court set aside the cancellation order, restoring the status to the date of the Show Cause notice issuance.The Petitioner, having filed returns since the cancellation, is granted liberty to submit an additional reply to Respondent No. 4 within ten days, highlighting the filing of returns and any other pertinent grounds. Respondent No. 4 is directed to proceed in accordance with the law. The writ petition is disposed of following these observations and directions.