GST Registration Cancellation Overturned: Arbitrary Order Quashed, Petitioner Granted Opportunity to Respond and Seek Fair Reconsideration HC allowed writ petition challenging GST registration cancellation. The court found the cancellation order arbitrary and mechanically passed without ...
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GST Registration Cancellation Overturned: Arbitrary Order Quashed, Petitioner Granted Opportunity to Respond and Seek Fair Reconsideration
HC allowed writ petition challenging GST registration cancellation. The court found the cancellation order arbitrary and mechanically passed without proper consideration of the petitioner's circumstances. HC quashed the order and directed the petitioner to submit a reply within three weeks for a fresh administrative decision, ensuring principles of natural justice were followed.
Issues involved: The writ petition filed under Article 226 of the Constitution of India challenges the order of cancellation of the petitioner's GST registration, citing reasons such as non-submission of returns and violation of principles of natural justice.
Details of Judgment:
Issue 1: Cancellation of GST registration The petitioner sought relief from the High Court to set aside the order of cancellation of registration, arguing that the order was arbitrary, illegal, against natural justice principles, and contrary to relevant Acts and judicial pronouncements. The petitioner had not replied to a show cause notice due to unforeseen circumstances, including the absence of the person handling GST matters and the managing partner's health issues. The court noted discrepancies in the order mentioning the submission of a reply that was not available, indicating a lack of application of mind. The petitioner had paid a substantial amount towards liabilities and was willing to file returns to reactivate the registration. The court found merit in the petitioner's argument that the order was passed mechanically and lacked proper consideration, thereby allowing the writ petition and directing the petitioner to submit a reply within three weeks for a fresh decision by the competent authority.
Decision: The High Court allowed the writ petition partly, quashing the impugned order of registration cancellation and instructing the petitioner to submit a reply within three weeks for a fresh decision. No costs were awarded, and any related pending petitions were to be closed accordingly.
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