GST Registration Canceled Without Proper Notice: Landmark Ruling Upholds Natural Justice and Procedural Fairness

HC found petitioner's GST registration was canceled without proper notice, violating natural justice principles. The court set aside the order dated 31.12.2023, directing the petitioner to submit a reply within four weeks and mandating a fresh order with personal hearing within three months, ensuring due process and fair opportunity to respond.

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Issues Involved:
The issues involved in the judgment are the cancellation of registration under the UPGST Act, 2017 and the failure to serve notices to the petitioner through e-mode or physical/offline means before passing the impugned order.

Cancellation of Registration:
The petitioner's registration under the UPGST Act, 2017 was canceled on 6.5.2019 w.e.f. 31.1.2019, and it was undisputed that the registration was not revived. The revenue did not claim that the registration was ever revived or that the petitioner sought revival. Due to this, the petitioner was not required to check the GST portal for show cause notices issued for 2017-18 through e-mode before the adjudication order dated 31.12.2023.

Failure to Serve Notices:
It was highlighted that no physical/offline notice was issued or served on the petitioner before the impugned order was passed. Given these facts, the court found that there was no purpose in keeping the petition pending or calling for a counter affidavit at that stage. The petitioner was not directed to seek an alternative remedy.

Order of the Court:
Considering the lack of fulfillment of the rules of natural justice, the court set aside the order dated 31.12.2023. The petitioner was instructed to treat the said order as the notice and submit a final reply within four weeks. Upon compliance, a fresh order would be passed after providing an opportunity for a personal hearing, preferably within three months from the submission of the reply.

Conclusion:
The writ petition was disposed of accordingly, emphasizing the importance of adhering to the principles of natural justice and providing the petitioner with an opportunity to respond effectively to the allegations against them.

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