2023 (11) TMI 1340 - HC - GST

GST Registration Cancellation Upheld: Procedural Compliance Validates Tax Authority's Action Under Statutory Guidelines

M/s. GOLDEN TIMBER INDUSTRIES, M/s. SREE AYYAPPA TRADERS, ROYAL WOOD INDUSTRIES, M/s. HINDUSTHAN WOOD PRODUCTS Versus THE ADDITIONAL DIRECTOR DIRECTORATE GENERAL OF GST INTELLIGENCE KOCHI, THE ADDITIONAL / JOINT COMMISSIONER CHENNAI, THE DEPUTY COMMISSIONER/ ADDITIONAL COMMISSIONER, THE COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX THIRUVANANTHAPURAM, CENTRAL ECONOMIC INTELLIGENCE BUREAU NEW DELHI, ASSISTANT / DEPUTY COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX KANNUR

HC dismissed writ appeal challenging GST registration cancellation. Court upheld lower court's directive for expedited adjudication of show cause notice, ... Cancellation of registration certificates - seeking a direction to the respondents to complete the adjudication proceedings of a show cause notice that had been issued to them - HELD THAT:- The cancellation of the registration certificates issued to the appellants was as early as in February, 2023. It was almost two months later that Ext.P1 show cause notice was issued to them on 20.4.2023. It is not in dispute that the appellants have furnished a reply to the show cause notice and have waited for more than four months before pursuing the matter before the 2nd respondent and before this Court. While disposing the writ petition, the learned Single Judge, rightly, directed the 2nd respondent to complete the adjudication process in respect of the show cause notice taking note of the fact that the replies to the show cause notice had already been submitted by the appellants. It was perhaps considering the nature of the allegations in the show cause notice that the learned Single Judge did not deem it necessary to restore the registration certificates to the appellants pending an adjudication of the show cause notice by the 2nd respondent. There are no reason to disturb the directions of the learned Single Judge and take a different view in the matter of restoring the registration certificates to the appellants - appeal dismissed. The Kerala High Court, presided over by Honourable Justices Dr. A.K. Jayasankaran Nambiar and Dr. Kauser Edappagath, addressed a writ appeal filed by the petitioners (appellants) against a judgment by a learned Single Judge. The appellants challenged the cancellation of their registration certificates under the Central Goods and Services Tax Act (CGST Act) and State Goods and Services Tax Act (SGST Act) and sought a directive for the adjudication of a show cause notice issued to them.The Single Judge had directed the 2nd respondent to complete the adjudication process regarding the show cause notice and to allow the appellants to present evidence. The appellants argued that the cancellation should have been set aside pending adjudication. However, the High Court noted that the cancellation occurred in February 2023, with the show cause notice issued in April 2023, and the appellants had already submitted replies.The Court found no reason to overturn the Single Judge's decision, which did not restore the registration certificates pending adjudication, likely due to the nature of the allegations. Consequently, the Court dismissed the writ appeal, upholding the Single Judge's directive for expedited adjudication.