TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Ex Parte GST Registration Cancellation Set Aside for Lack of Personal Notice and Natural Justice Violation</h1> The HC set aside the ex parte cancellation of the petitioner's GST registration, finding a violation of natural justice as no personal notice was served ... 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:- In the case of M/s Shiv Shakti Enterprises [2025 (2) TMI 1225 - ALLAHABAD HIGH COURT], this Court inter alia observed 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.' Following the order in the case of M/s Shiv Shakti Enterprises, the writ petition is allowed. The order dated 27.04.2024 is set aside - 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 will pass a fresh order - petition allowed by way of remand. ISSUES: Whether an ex parte order passed under Section 73 of the UPGST Act, 2017 can be sustained when the petitioner had applied for cancellation of registration prior to issuance of the show cause notice.Whether issuance of a show cause notice and passing of an order without providing an opportunity of hearing violates principles of natural justice.Whether cancellation of registration with retrospective effect precludes the tax authority from initiating proceedings for the period prior to cancellation. RULINGS / HOLDINGS: The Court held that once the petitioner had applied for cancellation of registration and the registration was cancelled with retrospective effect, 'there was no occasion for the respondents to have issued the notice in the Additional Tab,' and consequently, the ex parte order passed under Section 73 of the UPGST Act, 2017 'deserves to be quashed and set aside.'The Court found that the issuance of the show cause notice and passing of the ex parte order without personal service or opportunity to be heard amounted to a violation of the 'principles of natural justice.'The retrospective cancellation of registration established that the petitioner 'had gone out of business,' and therefore, the tax authority's action for the period prior to cancellation was not justified without proper notice and hearing. RATIONALE: The Court applied the legal framework under Section 73 of the UPGST Act, 2017, which governs recovery of tax and related proceedings, emphasizing the need for adherence to procedural fairness.The Court relied on precedents including a coordinate bench decision in Chemsilk Commerce Pvt. Ltd., where similar circumstances led to setting aside of orders for violation of natural justice.The Court followed the principle that a cancellation of registration with retrospective effect negates the tax authority's jurisdiction to initiate proceedings for the cancelled period without proper notice.The judgment reflects a doctrinal emphasis on upholding principles of natural justice in tax proceedings, particularly where registration cancellation is involved.
TaxTMI 
TaxTMI 
