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of <h1>GST registration cancellation set aside for ex parte action; petitioner given 15 days to respond and hearing</h1> <h3>M/s Shiv Shakti Enterprises Versus State of U.P. and another</h3> HC found cancellation of GST registration was effected ex parte and violated principles of natural justice, noting the petitioner had ceased business and ... Cancellation of GST registration of petitioner - ex parte order has been passed and the same was not enforced - violation of principles of natural justice - HELD THAT:- The application for cancellation filed on 01.07.2021 is evidenced by Annexure-4 and the very fact that the registration has been cancelled with effect from 01.04.2021 though order in this regard was passed on 08.05.2024, establishes the fact that the petitioner apparently had gone out of business and, therefore, there was no occasion for the petitioner to have visited the Department Portal to find out if any show cause notice had been issued for period prior to seeking cancellation or order passed. It is not the case of the Department that any notice in person was served on the petitioner. A Coordinate Bench of this Court in Chemsilk Commerce Pvt. Ltd. [2024 (4) TMI 463 - ALLAHABAD HIGH COURT] in similar circumstances on finding that there has been violation of principles of natural justice, has set aside the order passed. The matter is remanded back to the assessing authority, the petitioner may submit its response to the show cause notice as issued within a period of 15 days from today and after providing opportunity of hearing to the petitioner, the authority would pass a fresh order - petition allowed by way of remand. The Allahabad High Court, through Chief Justice Arun Bhansali and Justice Kshitij Shailendra, allowed the writ petition challenging the ex parte order dated 27.08.2022 passed under Section 74(9) of the UPGST Act, 2017 for the tax period April-December 2020. The petitioner had applied for cancellation of registration on 01.07.2021, which was ultimately cancelled with effect from 01.04.2021 by order dated 08.05.2024. The Court noted that since the petitioner was no longer in business from that date, there was 'no occasion' for the Department to issue a show cause notice or pass an ex parte order without serving notice in person, thereby violating principles of natural justice. Relying on the precedent in *Chemsilk Commerce Pvt Ltd v. State of U.P.*, the Court held that the ex parte order deserved to be quashed and set aside. The matter was remanded to the assessing authority to provide the petitioner an opportunity to respond to the show cause notice within 15 days and to pass a fresh order after hearing. The Court emphasized that the petitioner's cancellation application and subsequent cancellation with retrospective effect established the petitioner's cessation of business, undermining the basis for the earlier order.
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